The US Securities and Exchange Commission has accused Ripple Labs Inc. in obtaining over $ 1.3 billion through an unregistered offering of securities in the form of digital assets.
According to the documents filed by the department, the co-founder of Ripple Labs Inc. Christian Larsen, the head of the fintech company Brad Garlinghouse, sold XRP tokens to large market participants from the United States, using the proceeds to develop the business. In addition, the managers conducted personal unreported XRP sales of $ 600 million.
“The registration requirements are designed to ensure that potential investors, including, importantly, retail investors, receive important information about the issuer’s business operations and financial condition,” said Mark P. Berger, deputy head of the Commission’s enforcement department. “We believe that Ripple and its executives have failed for years to comply with these core provisions to protect investors who, in turn, did not have the information they were entitled to.”
We add that the SEC complaint notes the failure of representatives of Ripple to comply with the national Securities Act of 1933 and requires a ban, withdrawal with payment of interest before sentencing.
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