The U.S. Securities and Exchange Commission (SEC) has dropped all charges against Ripple Labs CEO Brad Garlinghouse and executive director Chris Larsen, according to an Oct. 19 court filing.
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Fast facts:
- The SEC will no longer pursue allegations that Ripple’s Garlinghouse and Larsen aided and abetted securities law violations related to Ripple’s XRP trading.
- According to information on Thursday filingboth parties preliminarily agreed to voluntarily drop the aiding and abetting charge, which means that the charge cannot be brought again.
- The filing adds that the SEC will continue its claims against Ripple.
- In July, Judge Torres ruled that Ripple Labs’ programmatic sale of XRP tokens to retail investors did not qualify as a financial security. The judge gave the SEC until August 18th to file an interim appeal. Interlocutory appeals occur before all claims against the parties have been resolved and are only permitted under certain circumstances.
- Earlier this month, Judge Annalisa Torres rejected the agency’s interlocutory motion to overturn the verdict.
- In December 2020, the SEC sued the San Francisco-based technology company and its executives, alleging that Ripple’s sale of XRP constituted an offering of unregistered securities.
- The XRP token rose 6.49% in the 24-hour period ending at 4:50 p.m. in Hong Kong, trading at USD 0.512. coin market cap.
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