Ripple CEO Breaks Silence, Addressing Key SEC Accusations

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Thu, 01/07/2021 - 20:55
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Alex Dovbnya
Ripple CEO Brad Garlinghouse has addressed the accusations of offering kickbacks to exchanges to list XRP among some others
Ripple CEO Breaks Silence, Addressing Key SEC Accusations
Cover image via U.Today

In a recent Twitter thread, Ripple CEO Brad Garlinghouse addresses some "unproven allegations" that were outlined in the SEC lawsuit that was filed against the company last month. 

He claims that he's not able to go into details publicly but chose to mention the key issues nonetheless.

Garlinghouse states that Ripple has no control over what exchanges are listing or delisting XRP, claiming that it's "open-source and decentralized." Yet, he avoided directly answering the very question of whether or not the blockchain decacorn was attempting to buy its way onto Coinbase and Gemini as the SEC alleges. 

After being sued by Tetragon, Ripple's key shareholders, Garlinghouse is certain that their investors still have faith in the company. 

Furthermore, he asserts that the company's financial incentives to partners that use its On-Demand Liquidity (ODL) product are "totally lawful": 

"We have provided some customers, especially first movers, w/ incentives to use ODL - this is building a payments network 101 (and totally lawful). Every payments network (PayPal, Visa, MC, etc) has or still uses incentives."

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Ripple's official response is coming soon      

Ripple is going to file its official legal response "within weeks," according to Garlinghouse:   

"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."         

As reported by U.Today, a pretrial conference between the two parties is going to occur on Feb. 22.            

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About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets, can be contacted at alex.dovbnya@u.today.