Ripple’s few days got a lot worse. After the fintech company was the subject of a SEC lawsuit for its flagship XRP witness last week, Coinbase announced in a blog post on Tuesday that Ripple’s business would be suspended on its platform.
According to the blog, Ripple fans can continue to negotiate the token at a limited capacity until the XRP suspension goes into effect on January 19th. Coinbase noted that this would not impede its customers ’access to their XRP portfolios, nor would it prevent them from using the same portfolios for their day-to-day deposits and withdrawals.
How to get the boot the biggest digital currency exchange in the country is a rather serious rejection, in addition to the previous general bans OKCoin i Bitstamp, two medium-sized currency exchanges that cut ties immediately after the SEC’s lawsuit. The value of XRP on the Coinbase site has been in free fall over the past week, dropping more than half of the valuation it had before the SEC’s shoulder came to light.
For those in need of an upgrade, the SEC’s main claim was that Ripple had spent the last seven years selling XRP as a currency, when in fact it should have been classified as security at all times, and subject to the type of public disclosure to investors required of the securities so that such investors can assess the risks involved. The SEC alleged that for the past seven years Ripple’s investors remained in the dark, the company raised “at least” $ 1.38 billion and continued to use those funds to fuel the business operation “without reveal how he did it “. stated the SEC.
In response to these charges, Ripple CEO Brad Garlinghouse initially defended XRP’s currency title in a series of tweets before becoming a conspiracy-sounding diatribe alleging, among other things, that the Chinese government had some sort of control over other bitcoin and ether cryptocurrencies. We’ve contacted Ripple for feedback and we’ll update if we find out again.
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