SEC sues Ripple, and Ripple may face being delisted and reset to zero

ChrisLarsen 2025-10-14 23:10 55754人围观 XRP

According to foreign media reports, the U.S. Securities and Exchange Commission (SEC) announced today that it has filed a lawsuit against Ripple and two of its executives, accusing them of raising more than $1.3 billion through an unregistered, ongoing digital asset securities offering.

According to the SEC’s indictment, the two executives are: Christian Larsen, co-founder, executive chairman of the board and former CEO of Ripple, and Bradley Garlinghouse, the company’s current CEO. The indictment alleges that Ripple raised funds in unregistered securities offerings beginning in 2013 by selling a digital asset called XRP to U.S. and global investors. Ripple also distributed billions of XRP in exchange for non-cash considerations such as labor and market-making services. According to the indictment, in addition to organizing and promoting XRP sales used to finance corporate operations, Larsen and Garlinghouse also conducted unregistered personal sales of XRP totaling approximately $600 million.

In response to the SEC suing Ripple for selling $1.3 billion in unregistered securities, Compound general counsel Jake Chervinsky tweeted earlier today that this is very bad for Ripple. At worst, it's securities fraud. If XRP were considered a security, XRP might not be available for use, and violations of regulations would be fatal for Ripple. Investigations of individual executives are very high-profile, such is the hardline attitude of the SEC at the moment. In other words, if the prosecution is successful, XRP will face a trading suspension, transfers or manifestations will not be executed, and the exchange may delist XRP to avoid risks.

Ripple is not a blockchain

Many investors who know something about digital currency or blockchain basically know that blockchain projects cannot be completely shut down and blocked, but why is it different when it comes to Ripple? In fact, Ripple is not a blockchain. BitcoinTalk user leopard2 once said, "Just a friendly reminder that Ripple is not a cryptocurrency." This statement received responses from many people in the industry. Ripple CEO Brad Garlinghouse also admitted in an internal meeting, "I don't call it a cryptocurrency, it's not a currency."

Ripple XRP is the base currency of the Ripple network. It can be circulated throughout the entire ripple network. The operating company of Ripple is Ripple Labs (its predecessor is OpenCoin). In addition to Ripple, other currencies can also be run in the Ripple system, such as CNY and USD. In other words, the Ripple system is a gateway protocol intranet transfer system that serves banks. It is designed to promote fast cross-border payments and has nothing to do with the blockchain. Ripple currency only serves as an intermediate currency in the ripple system. The processing nodes of this transfer system are all controlled by Ripple, and there is only one ledger, which is no different from traditional centralized companies. This means that if Ripple is successfully sued and the company is shut down and all nodes are shut down, then the Ripple network will be completely shut down and blocked, and will completely stop operating. There is a high probability that Ripple coins will naturally be delisted and reset to zero.

Users need to beware of risks

The market value of Ripple currently exceeds US$20 billion. As the news continues to ferment, the price of XRP has fallen sharply, falling by more than 20%. If the news is true and the prosecution is successful, XRP may face an even more serious situation. Investors need to prevent risks in advance, and it is best to transfer positions to avoid risks.