The lawsuit filed by the US Securities and Exchange Commission (SEC) against Ripple continues. The parties are arguing before the court with new files and different defenses.
This time the SEC took the offensive in the Ripple case.. New accusations!
As it is known, the SEC sued Ripple for illegally offering securities to the market.. In essence, the court will decide whether XRP is a security or a cryptocurrency.. As such, the Ripple company claims that XRP is not a security and is a cryptocurrency like Ethereum/Bitcoin.. Ripple bases its defense on this theory. The SEC, on the other hand, makes its defense that XRP is a security.
In the aforementioned case, Ripple and the SEC submitted their written statements to the court.. In the SEC written statement, the former director of Ripple is accusing Chris Larsen and the Ripple company.. Chris Larsen “accepted and directed” Ripple’s unlicensed sale of XRP,’ SEC claims. Again, allegedly, Larsen promoted XRP as an investment tool to generate personal income.. So, according to the SEC, Chris Larsen knew that XRP was “an investment contract” and he personally benefited from the process.
“The lawsuit filed against Larsen’s Ripple ‘s illegal (XRP) distribution, its own financial interests are aligned with those of Ripple, and it is taking steps to advance this process.”
SEC in its written statement Chris He claims that the accusations he made against Larsen apply to Brad Garlinghouse, CEO of Ripple as well.
Please See: DOGE 1 if Coinbase lists Dogecoin would it be dollars?
Ripple CEO Brad Garlinghouse allegedly treated XRP as an investment and was incentivized to increase XRP’s transaction price and volume. Likewise, Garlinghouse “understood the nature of existence” and made extensive sales to “monetize” executive income. It was claimed that Garlinghouse violated the relevant Article 5 with this step.
In the meantime, it is useful to explain that Chris Larsen is the founder of Stellar (XLM).
Source