The Securities and Exchange Commission (SEC) has dismissed the charges, with prejudice against Ripple principles Brad Garlinghouse and Chris Larsen. This is according to an X (Tweet) distributed by lawyer James Filan and reposted by Stuart Alderoty, Chief Legal Officer at Ripple.
“The SEC made a serious mistake going after Brad & Chris personally – and now, they’ve capitulated, dismissing all charges against our executives. This is not a settlement. This is a surrender by the SEC.”
The SEC made a serious mistake going after Brad & Chris personally – and now, they’ve capitulated, dismissing all charges against our executives. This is not a settlement. This is a surrender by the SEC. https://t.co/TOsG64ZdEx
— Stuart Alderoty (@s_alderoty) October 19, 2023
Garlinghouse, CEO of Ripple, said the SEC had attempted to personally ruin them in a case that alleged no fraud.
“The SEC repeatedly kept its eye off the ball while secretly meeting with the likes of SBF – failing again and again to protect US consumers & businesses. How many millions of taxpayer $ were wasted?! Feels good to finally be vindicated.”
The SEC has made mistakes in its case. Earlier, a Judge determined that institutional sales of XRP were unregistered securities offerings, but other XRP distributions by Ripple would not qualify as securities transactions, shattering part of the SEC’s argument in regard to the facts and circumstances. The SEC said it would meet with Ripple in regard to the remaining issue pertaining to the institutional sales of XRP as that lawsuit continues.
Vindication may be at hand for the Ripple executive team, and XRP, the digital asset at the center of the dispute, jumped in price on the news.
The last 3 years we’ve seen a rogue administrative state that needs to be held accountable for its actions – not just an investigation into the conflicts of interests that led to these baseless claims, but how the US actively demolished its global standing as the home for… https://t.co/TyMcnFU3mP
— Chris Larsen (@chrislarsensf) October 19, 2023