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The U.S. Securities & Exchange Commission (“SEC”) filed a complaint against Ripple Labs, Inc. (“Ripple”) and two of its executives, Brad Garlinghouse and Chris Larsen, on December 22, 2020 in the U.S. District Court for the Southern District of New York
[1], alleging that sales of $1.3 billion of XRP by Ripple and the executives during a period ranging from 2013 through 2020 constitute an ongoing unregistered offering of securities in violation of Section 5 of the Securities Act of 1933, as amended. In a significant departure from prior actions by the SEC, the complaint names Ripple executives as individual defendants, both for their alleged direct offers and sales of Ripple’s XRP in violation of Section 5, as well as their role in allegedly aiding and abetting Ripple’s violation of securities laws. As new leadership prepares to take the helm at the SEC, likely under the leadership of former CFTC Chair Gary G
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