By cryptoadmin Ripple CEO Brad Garlinghouse announced that they are seriously considering shutting down Ripple entirely after the US Securities and Exchange Commission (SEC) filed a lawsuit against the company in 2020.
Speaking at an event at the KU School of Business, Garlinghouse said that the SEC has virtually unlimited power and resources, making the decision of whether or not to fight the case extremely difficult.
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According to Garlinghouse, one of the options Ripple had was to distribute its $XRP holdings to shareholders and cease operations by notifying the SEC that it no longer held $XRP. However, company management assessed that such a decision could lead to hundreds of employees losing their jobs.
Garlinghouse noted that Ripple chose to pursue legal action instead, stating that the company was prepared to undertake a long and costly litigation process to counter the SEC’s allegations and continue its operations.
In December 2020, the SEC filed a lawsuit against Ripple and its executives Brad Garlinghouse and Chris Larsen, alleging that the sale of $XRP constituted an unregistered securities offering.
*This is not investment advice.