The SEC lawsuit against Ripple, which was made public shortly before Christmas, continues to be the dominant topic on the market alongside the Bitcoin price’s furious rise. After numerous exchanges and crypto investment funds have pulled the ripcord and stopped trading with XRP in recent days, Ripple Labs is seemingly also reacting with regard to the agreement with Jed McCaleb. SEC filed a lawsuit against Ripple for allegedly selling security without registering.
McCaleb could also face the consequences due to XRP sales.
According to Leonidas Hadjiloizou, a respected member of the XRP community, the apparent reason for Jed McCaleb to halt the XRP sales could be the SEC lawsuit against Ripple announced on Dec. 21. The US SEC complaint against Ripple names CEO Brad Garlinghouse and the co-founder Chris Larsen and therefore, McCaleb could also face the consequences from selling XRP. McCaleb is also a Ripple co-founder and has sold XRP, just like Larsen and Garlinghouse. In early December, when the XRP price pumped above $0.60 and trading volume hit new record highs, the former co-founder McCaleb’s sales broke new records as well.
No Jed sales today either. Second day in a row. Looking forward to seeing what Ripple will do with the January XRP escrow release in a week.
— Leonidas Hadjiloizou (@LeoHadjiloizou) December 25, 2020
Former SEC chairman says the lawsuit could invoke billions in losses to innocent third parties.
As reported earlier, the former U.S. Securities Exchange Commissioner Joseph Grundfest described the lawsuit against Ripple as unprecedented, given the upcoming change in power among the SEC’s top ranks and presidential administration next month. The former SEC commissioner Grundfest said: “no pressing reason compels immediate enforcement action.” The SEC filed the lawsuit against Ripple, alleging that Ripple’s native token XRP is a security, and the blockchain firm sold them without registering. XRP’s price plunged over 25% since the news.
