As expected by Ripple Labs Inc. CEO Brad Garlinghouse yesterday, the XRP cryptocurrency firm was finally sued by the Securities and Exchange Commission (SEC) today Malaysian time.
The suit was also filed against its two executives, Garlinghouse and Christian Larsen on charges of violating investor protection laws when selling cryptocurrencies, XRP.
According to a report released by the SEC, they have managed to raise more than $ 1.3 billion through the supply of unregistered digital asset securities since 2013.
Ripple was also charged with distributing billions of XRPs for non-cash exchanges such as labor and manufacturing services.
Larsen and Garlinghouse also committed the sale of an unregistered XRP amounting to about $ 600 million, causing defendants to be deemed to have failed to register XRP offers and sales.
The suit was filed in the Manhattan federal court under the Securities Act 1993.
It was one of the high-profile cases involving a crypto-currency firm, the largest firm sued by the SEC and occurred when its chairman Jay Clayton ended his session at the end of the Donald Trump administration.
The XRP price, which doubled its profit this year, was down 14.6% in 24 hours to $ 0.41.
