- Three cryptocurrency exchanges have stopped trading XRP tokens.
- This comes on the heels of the SEC filing a $1.3 billion lawsuit against Ripple and two of its executives.
- These exchanges have paused trading even though the lawsuit has only just been announced.
Three crypto exchanges—CrossTower, Beaxy, and OSL—have halted the trading oftokens after the US Securities and Exchange Commission (SEC) officially filed a $1.3 billion lawsuit against Ripple
This initial purchase would represent roughly 1.5% of Mogo’s total assets as of the end of Q3 2020, Mogo noted.
Founded in 2003, the Canadian company offers its clients personal loans, identity fraud protection, mortgages, a Visa Prepaid Card, and other services. In 2018, it launched MogoCrypto app—ostensibly “the easiest way to buy and sell Bitcoin in Canada,” the firm claims.
“We are strong believers in Bitcoin as an asset class and believe this investment is consistent with our goal to make Bitcoin investing available to all Canadians. In addition, we believe Bitcoin represents an attractive investment for our shareholders with significant long-term potential as its adoption continues to grow globally,” Feller added.
Please note: In light of US Securities & Exchange Commission’s enforcement action against Ripple Labs & 2 of its executives, we have suspended all #XRP payment in and trading services on the OSL platform, effective immediately and until further notice.https://t.co/EXJJEHMawn
— OSL (@osldotcom) December 23, 2020
“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,” the SEC said in a press release.
I just read the 71 page SEC complaint vs. Ripple.
I think any crypto exchange who doesn’t delist XRP this week is out of their mind.
If the SEC says it’s a security you’d be crazy to list it without a license.
— Bruce Fenton (@brucefenton) December 23, 2020
If the SEC wins its case against Ripple and the court deems XRP unregistered securities, this will present a serious risk to every crypto exchange that currently lists the token, experts noted.
“I think any crypto exchange who doesn’t delist XRP this week is out of their mind. If the SEC says it’s a security you’d be crazy to list it without a license,” said Bruce Fenton, CEO of Chainstone Labs, today.
The SEC has charged @Ripple with conducting an unregistered security sale.
— Beaxy Exchange (@BeaxyExchange) December 22, 2020
Thus, to mitigate these risks, crypto exchanges—at least smaller ones for now—have begun delisting XRP.
“CrossTower’s listing committee evaluates tokens along multiple dimensions. One of the criteria is whether an asset is a security. Given the uncertainty regarding XRP’s status, CrossTower has decided to delist XRP,” CrossTower president Kristin Boggiano told Coindesk
.And the price of XRP has felt the pressure. At press time, the token is trading at around $0.31—down 32.25% on the day, according to CoinMarketCap. The token has also lost its position as the 3rd largest crypto by its market capitalization, sliding down to the fourth place.