The U.S. Securities and Exchange Commission (SEC) agreed to drop charges against two top Ripple executives, according to an Oct. 19 press release.
The SEC previously charged Ripple CEO Brad Garlinghouse and co-founder and executive chairman Chris Larsen with aiding and abetting Ripple’s institutional sales of XRP.
Garlinghouse said in a statement:
“For nearly three years, Chris and I have been the subject of baseless accusations from a rogue regulator… instead of looking for the criminals stealing client money on foreign exchanges, the SEC went after the good guys – along with our entire company of innovators and entrepreneurs.”
Larsen, meanwhile, called the case an “abuse by the administrative state” and an “attempt to ruin us personally” while destroying the company itself.
The SEC did not comment publicly but announced its decision in an Oct. 19 court filing. In one filing, the SEC wrote that her claims are now “dismissed in their entirety, without prejudice, and without costs or fees to either party.”
In another document, the agency said the stipulated and voluntary dismissal eliminates the need for a trial that would otherwise have taken place in April.
Ripple case underway
The dismissal does not fully conclude the SEC’s case against Ripple, which concerns Ripple’s actions as a company — and not just the actions of its individual members.
Ripple achieved a partial victory around July 13 when a judge ruled that the company’s programmatic sales of XRP and certain other distributions did not violate securities laws. Ripple itself confirmed this victory on July 19, explaining that sales of XRP on the exchange, sales of XRP by executives, and transactions involving XRP are not securities.
Starting in August, the SEC attempted to appeal Ripple’s initial victory regarding the programmatic sale of XRP. However, in October, the judge ultimately dismissed the SEC’s appeal request on October 3, concluding that part of the case.
The judge’s original ruling nonetheless ruled that Ripple’s sales to institutional investors constituted securities. Ripple and the SEC must still determine appropriate remedies for violations related to those institutional sales, according to the latest filing.
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