According to Ripple CEO Brad Garlinghouse, his firm has tried to settle with the Securities and Exchange Commission, to no avail.
In December, the SEC filed a $1.3 billion lawsuit against Ripple, Garlinghouse, and co-founder Chris Larsen for their alleged role in selling.
In a press release, the SEC said, “The defendants failed to register their offers and sales of XRP or satisfy any exemption from registration, in violation of the registration provisions of the federal securities laws.”
Today, in a Twitter thread, Garlinghouse referred to Ripple’s attempt so settle the litigation, stating, “Can’t get into specifics, but know we tried—and will continue to try [with] the new administration—to resolve this in a way so the XRP community can continue innovating, consumers are protected and orderly markets are preserved.”
I’m not going to litigate the SEC’s unproven allegations on Twitter, and as you can imagine, there are new considerations to what can / should be said publicly after the litigation process starts. However, I would like to address 5 key questions I’ve seen. 1/10
— Brad Garlinghouse (@bgarlinghouse) January 7, 2021
The CEO also attempted to answer questions about whether Ripple had paid exchanges to list XRP, stating, “Ripple has no control over where XRP is listed, who owns it, etc.”
That wasn’t enough for some observers, including Anderson Kill partner Hailey Lennon, who responded with, “So is that a no?”
So is that a no? Were exchanges paid?
— Hailey Lennon (@HaileyLennonBTC) January 7, 2021
Other questions remain. And Ripple will have a chance to answer them soon. A pre-trial conference is scheduled for next month. As to why Ripple hasn’t yet responded to the SEC, Garlinghouse said,
“The legal process can be slow! Things may seem quiet, but there is plenty happening behind the scenes. We’ll be filing our initial response within weeks.”