Main navigation

XLM May Get in Trouble If XRP Deemed a Security: XRP Researcher

News
Sat, 10/16/2021 - 10:55
article image
Yuri Molchan
A researcher from the XRP community believes that XLM and Stellar may get in trouble should the SEC deem XRP a security
XLM May Get in Trouble If XRP Deemed a Security: XRP Researcher
Cover image via stock.adobe.com
Read U.TODAY on
Google News

Researcher Leonidaz Hadjiloizou has posted a tweet, in which he asks the opinion of the XRP community about which side in the Ripple-SEC legal battle the company’s co-founder and former CTO Jed McCaleb would take, if he were to do it.

According to Hadjiloizou, should the SEC win and XRP is deemed a security, then Jed and his company Stellar which he created as a rival to Ripple will be in for hard times. If the court rules that XRP is a security, then McCaleb broke the law by selling these potentially unregistered securities – 9 billion of them that he received from Ripple as compensation as part of the Settlement Agreement.

Besides, Hadjiloizou says that if XRP is announced a security, then the native token of Jed’s Stellar, XLM, may also get in trouble and, perhaps, face similar accusations.

Related
260 Billion SHIB Moved by Anon Whales, While Coin Is Trying to Recover

So far, no legal action has been filed by the SEC against Jed McCaleb, even though he co-founded Ripple Labs together with Chris Larsen. The latter and the CEO Brad Garlinghouse, along with Ripple Labs, are the defendants in this legal case of the SEC against Ripple.

Jed has been selling his 9 billion XRP in parts, however, he has not sold any coins since September 1.

article image
About the author

Yuri is a crypto journalist interested in technology and technical innovations. He has been in crypto since 2017. Believes that blockchain and cryptocurrencies have a potential to transform the world in the future in many of its aspects. ‘Hodls’ major cryptocurrencies and has written for multiple crypto media outlets. 

His articles have been quoted by such crypto influencers as Tyler Winklevoss, John McAfee, CZ Binance, Max Keiser, etc.

Currently Yuri is a news writer at U.Today and can be contacted at yuri.molchan@u.today.