Monday, October 25, 2021
Home Crypto News Market SEC Investigator Behind $ 1.3 Billion XRP Lawsuit Resigns

SEC Investigator Behind $ 1.3 Billion XRP Lawsuit Resigns

- Advertisement -

Marc P. Berger, who was appointed deputy director of the division of Enforcement at the U.S. Securities and Exchange Commission (SEC) in August 2020, is leaving the agency before the end of the month, according to an SEC press release. He was appointed acting director of the department after Stephanie Avakian left the SEC in December.



Read: Ripple Hires Top Amazon Manager And Continues To Attract High-Profile Executives

Although Berger’s time in the top position was short, it contains at least one major Highlight: the SEC’s $ 1.3 billion lawsuit against Ripple Labs, CEO Brad Garlinghouse and executive Chairman Chris Larsen.

The lawsuit, which was revealed at the end of Avakian’s tenure, alleges that Ripple failed to properly register the sale of XRP, the third largest cryptocurrency by market capitalization.


 The SEC considers XRP to be a security – a tradable capital contract that raises funds for a company or organization.

Ripple was invented by Ripple founders Larsen, Arthur Britto, and Jed McCaleb, as well as current Ripple CTO David Schwartz. It is supposed to be a cryptocurrency that allows banks to transfer money more efficiently.

But according to the SEC, Larsen and Garlinghouse sold XRP only to get rich. The SEC also alleges that Ripple paid companies to use XRP and thus support the price.

The lawsuit, filed in a New York Federal Court on December 22, sent the XRP price down. On December 21, XRP traded for $ 0.55, it dropped below 0.20 USD, but now XRP price is stabilizing and acting normal. USD and trading has been stopped by several exchanges such as Coinbase.

Telegram was also affected by Marc P. Berger. SEC forced the Messaging Software company to return $ 1.2 billion to those who invested in their fund raising campaign . The digital “Gram” tokens never came on the market.

In addition to the ICO-related enforcement actions, Berger also played a role in enforcing securities laws and protecting investors, including by taking action against prominent companies such as Robinhood Financial LLC, Deutsche Bank AG and Luckin Coffee.

Things are changing at the SEC as the administration moves from a Trump presidency to a Biden Administration on January 20.

President-elect Joe Biden is expected to appoint former Commodities and Futures Trading Commission Chairman Gary Gensler as the new SEC Chairman; Jay Clayton resigned in December 2020. The SEC has not yet appointed a new director of law enforcement.

Whether a new director can or will change the Situation for Ripple is impossible to predict. It remains to be seen how the negotiations will develop on February 2021.

Read SEC news: https://www.sec.gov/news/press-release/2021-5

- Advertisement -
Mark Brennanhttps://thecryptobasic.com/
Mark is 27, holds a Master degree in Business Administration, and works as a content Creator at TheCryptoBasic mostly on Crypto Market Updates. Since 2014 he has been active in the crypto sector. Thanks to the Business College in which other than Business subjects, he was taught about the disruptive potential of Blockchain. His interests include Blockchain technology and Crypto Market innovations. He also founded a small startup in which he gives lectures on cryptocurrencies.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

- Advertisment -

Recent News & Articles

Good Games Guild Announces Triple IDO on Seedify, Ignition, MoonStarter

Jakarta, Indonesia, 24th October, 2021, Good Games Guild, a gaming hub that aims to create the largest virtual world economy by optimizing its owned...

YearnNFT Finance: An Advanced Approach to NFTs with Digital Art and Collectibles

Since August, the market sales with respect to NFTs have skyrocketed, where a single NFT sales round up to millions worth. There have been...

The Bank Of Israel Aims To Launch Its CBDC On Ethereum

For now, central banks around the world are still working on developing and testing their own CBDCs, but there are new ones that are...

Russian Central Bank Head Says Russia Is Not Ready To Launch Crypto ETFs

The head of the Bank of Russia, Elvira Nabiullina gave a negative answer to the question about the possibility of trading cryptocurrency ETFs in...

Spanish Banks Anxiously Waiting For Central Bank Approval To Work With Cryptocurrencies

Spanish banks are interested in providing cryptocurrency services directly to clients and expect the Spanish Central Bank will bring regulatory clarity for crypto.

Reddit Intend To Bring Its Non Fungible Token (NFT) Platform

Reddit is looking to hire people for what could become a new platform for non-fungible tokens (NFTs) and digital goods. ...

Second Bitcoin ETF, Valkyrie Bitcoin Strategy ETF (BTF) Started Trading On Nasdaq

On the Nasdaq Stock Exchange under the ticker BTF, a Bitcoin futures ETF from Valkyrie Investments began trading at a price of $25.5.

Subscribe To Our Newsletter

Get Updated with All The latest Crypto News, Articles, Reviews, Analysis and much more. Delivered Every Monday.