Coinbase to suspend Ripple XRP trading following SEC lawsuit
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Coinbase Inc. today announced that it will suspend trading on Ripple Labs Inc.’s XRP cryptocurrency following a lawsuit filed against Ripple by the U.S. Securities and Exchange Commission alleging that the cryptocurrency is an unregistered security.
The suspension of XRP trading is not immediate, though Coinbase has moved to restrict trading leading up to the ban. Effective of today, XRP trading is being moved into a status described as “limit only,” a mode on Coinbase that means traders can only place and cancel limit orders, a type of order to purchase or sell at a specified price.
In light of the recent US action against Ripple, cryptocurrency exchange Coinbase on Tuesday said it will suspend trading in XRP cryptocurrency from January 19. The value of XRP, worlds third largest cryptocurrency after Bitcoin and Ethereum, crashed more than 40 per cent after the US Securities and Exchange Commission (SEC) sued both the founder and current CEO of its parent company Ripple for raising more than $1.3 billion through an unregistered securities offering after selling XRP. Coinbase said in a statement that the trading suspension will not affect customers access to XRP wallets which will remain available for deposit and withdraw functionality after the trading suspension.
World s 3rd largest cryptocurrency crashes after lawsuit
By IANS |
Published on
Fri, Dec 25 2020 9:42 IST |
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Holding, selling or dealing in cryptocurrencies such as Bitcoin could soon land you in jail for 10 years. (Xinhua/Gil Cohen Magen/IANS). Image Source: IANS News
San Francisco, Dec 25 : The value of XRP, worlds third largest cryptocurrency after Bitcoin and Ethereum, crashed more than 40 per cent after the US Securities and Exchange Commission (SEC) sued both the founder and current CEO of tech company Ripple for raising more than $1.3 billion through an unregistered securities offering after selling their cryptocurrency XRP.
According to CoinMarketCap, the XRP s declined more than 42 per cent in the past 24 hours and was down more than 63 per cent from its 30-day high of $0.76.
TechShout -
In a significant move, the US Securities and Exchange Commission (SEC) has sued both the founder and current CEO of tech company Ripple for raising more than $1.3 billion through an “unregistered securities offering” after selling their cryptocurrency called XRO, which is touted as the third-largest cryptocurrency by market value.
The lawsuit which said that XRO is a security not currency, claimed that Ripple’s former CEO and founder Christian Larsen and its current CEO Bradley Garlinghouse violated securities laws by selling XRP over a seven-year period starting in 2013.
According to the suit, the “illegal securities offering” created an information asymmetry that let Ripple sell XRP to investors who only knew what Larsen and Garlinghouse chose to tell them, The Verge reported on Tuesday.
SEC sues Ripple and two executives for selling XRP crypto: A $1 3 billion illegal security offering kitv.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from kitv.com Daily Mail and Mail on Sunday newspapers.