OKCoin latest exchange to suspend XRP trading and deposits

The crypto exchange said the situation between Ripple and the SEC “will take time to reach a resolution.”

Crypto exchange OKCoin announced it would suspend XRP trading and deposits following the news that the United States Securities and Exchange Commission would be pursuing legal action against Ripple.

In a blog post released today, OKCoin said its “best course of action” in response to the recent SEC lawsuit would be to suspend trading and deposits of XRP. The exchange wrote that the suspension would take place over two days. Users who borrowed XRP/USD through OKCoin “are required to return the borrowed value” before Jan. 3. The following day, the exchange will suspend spot trading, margin trading and deposits for XRP.

“It is likely that this situation will take time to reach a resolution,” said the OKCoin blog post. “We will proactively inform our customers when we have information that may change our position.”

OKCoin’s position comes following the SEC unveiling charges against Ripple as well as CEO Brad Garlinghouse and co-founder Chris Larsen on Dec. 22. The commission alleges that the firm and its executives engaged in an “unregistered, ongoing digital asset securities offering” to investors since 2013 through sales of the XRP token. Garlinghouse responded by saying the SEC “voted to attack crypto” and was doing “the opposite of ‘fostering innovation'” in the United States.

Since news of the SEC charges broke, the price of XRP has fallen more than 36% as some exchanges have announced they will halt trading for the token, including OSL, Beaxy and CrossTower. Digital asset exchange Bitstamp is also planning to suspend XRP trading, but only for users based in the United States. However, suspending XRP on OKCoin — ranked at number 29, according to CoinMarketCap — may be a precursor for large exchanges to follow.

At the time of publication, the price of XRP was $0.28, having fallen 3.5% in the last 24 hours.

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Crypto Exchanges Delist XRP Following SEC Lawsuit

Crypto Exchanges Delist XRP Following SEC Lawsuit

“Today, the SEC voted to attack crypto. Chairman Jay Clinton is picking winners and trying to limit US innovation in the crypto industry to BTC and ETH. We know crypto and blockchain technologies aren’t going anywhere. Ripple has and will continue to use XRP because it is the best digital asset for payments. It is […]

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Vitalik Buterin calls XRP a “shitcoin” following statements about ETH and BTC being “Chinese-Controlled”

Vitalik Buterin calls XRP a “shitcoin” following statements about ETH and BTC being “Chinese-Controlled”

The Co-founder of Ethereum Vitalik Buterin has blasted the team at Ripple for implying that both Ethereum and Bitcoin are likely to be controlled by the Chinese government. Buterin who is usually outspoken on ETH-related issues was quick to spot excerpts of the article posted by Ripple, titled “Summary of Ripple’s Wells Submission,” a follow […]

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Ripple’s “XRP will put up ridiculous numbers in the next few weeks,” pundit asserts amid potential lawsuit from SEC

Ripple's "XRP will put up ridiculous numbers in the next few weeks," pundit asserts amid potential lawsuit from SEC

Ripple’s XRP, the world’s third-largest cryptocurrency by market cap, will have an epic rally in the coming weeks, after failing severally to live up to its investors’ expectations over the years. According to PAC Global founder, David Gokhshtein, “$XRP will put ridiculous numbers in the next few weeks.” Many investors and especially the XRP army, […]

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SEC unveils suit against Ripple, calling XRP a ‘$1.3B unregistered securities offering’

The commission is alleging Garlinghouse, Larsen and Ripple have participated in an “unregistered, ongoing digital asset securities offering” to investors since 2013.

The United States Securities and Exchange Commission has taken legal action against Ripple as well as its CEO, Brad Garlinghouse,and co-founder Christian Larsen.

In charges filed today in federal district court in Manhattan, the commission is alleging that the XRP token is classified as a security and is accusing Ripple and the two executives of raising more than $1.3 billion through an “unregistered, ongoing digital asset securities offering” to investors beginning in 2013. The SEC further alleges that Ripple distributed XRP for “labor and market-making services” and that Garlinghouse and Larsen failed to register their personal XRP sales, estimated at $600 million.

“[These actions] deprived potential purchasers of adequate disclosures about XRP and Ripple’s business and other important long-standing protections that are fundamental to our robust public market system,” said Stephanie Avakian, director of the SEC’s Enforcement Division.

Under SEC regulations, individuals and crypto firms must register their offerings with the commission or under an exemption if they qualify as securities. Which tokens qualify as securities, however, remains an extremely contentious subject. The crypto industry has been waiting for clarity from the SEC or new legislation on the subject for a long time.

Meanwhile, the SEC said that Garlinghouse and Larsen failed to register XRP when it served as an investment in Ripple and to enrich the pair personally. The firm and its two leaders could face disgorgement of their gains as well as civil penalties.

News of the coming SEC lawsuit broke yesterday, causing a steep drop in the price of XRP — at the time of publication, the token is valued at $0.45, having fallen more than 20% in the last week. Garlinghouse addressed the charges on Twitter, saying that the SEC “voted to attack crypto.”

“The SEC is doing the opposite of ‘fostering innovation’ here in the US,” said Garlinghouse, referencing the commission’s FinHub announcing it would become a stand-alone office earlier this month. “It’s not just XRP they’re attacking here.”

Ripple board member and SBI Holdings CEO Yoshitaka Kitao said he was “optimistic that Ripple will prevail in the final ruling.” Kitao stated he believed Japan’s financial watchdog “has already made it clear that XRP is not a security” and expected a similar result from U.S. regulators.

David Schwartz, chief technology officer of Ripple, was seemingly less hopeful than Kitao when responding to the charges on Twitter:

“The United States is one of the few countries where regulators will, after years of you operating in full light of day and frequently updating them on everything you’re doing, turn around and tell you that you should have known you were breaking decades old laws all along. Apropos of nothing, of course.

Garlinghouse announced the SEC’s impending action last night. In November, he said that because the majority of RippleNet customers are based outside of the United States, a securities designation wouldn’t necessarily adversely affect the company’s underlying business. Earlier this year, Larsen said Ripple is considering relocating outside the U.S. amid growing frustration at the lack of regulatory clarity.

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