The United States Securities and Exchange Commission (SEC) is expected to sue Ripple in the near future.
The revelation was made by Ripple CEO Brad Garlinghouse through Fortune Magazine today.
The suit named Garlinghouse and co-founder Chris Larsen as defendants for selling unlicensed securities.
According to sources, the allegation is closely related to the status of XRP cryptocurrency as a security that needs to be registered with the SEC.
While it is unclear when the lawsuit will be filed, Garlinghouse described the SEC's action as a comprehensive attack on the American crypto industry and innovation.
Garlinghouse also uploaded a thread in which he stressed the SEC is working to limit American innovation in the crypto industry starting with Bitcoin (BTC) and Ethereum (ETH).
Garlinghouse has previously expressed dissatisfaction with US cryptocurrency legislation that has not been taken seriously and thoroughly. In October, the firm was determined to move abroad for the same reason.
The price of XRP was seen to drop sharply to $ 0.46, down 17% in the 24 hours following the unexpected news.
