Dizer Capital’s founder says it is strange that the SEC sued Ripple and called XRP a security, but spared Stellar.
Yassin Mobarak, the founder of VC firm Dizer Capital, has reacted to Bakkt’s mass delisting of multiple cryptocurrency assets amid increasing regulatory scrutiny of the crypto industry.
In a tweet yesterday, Mobarak said he has always been suspicious that the SEC sued Ripple and alleged XRP to be a security. At the same time, Stellar and the XLM coin were spared.
“I always found it strange and suspicious that Ripple was sued and XRP was accused of being a security while StellarOrg was spared and nothing happened to XLM,” said Mobarak.
— Yassin Mobarak 🪝 (@Dizer_YM) June 11, 2023
Bakkt Delists 23 Crypto Assets
The founder of Dizer Capital made this known in reaction to news of Bakkt delisting multiple top cryptos assets. As reported by The Crypto Basic, Bakkt delisted 23 crypto assets, including Stellar (XLM), Tezos (XTZ), Compound Token (COMP), Avalanche (AVAX), Enjin Coin (ENJ), etc.
Bakkt’s delisting of XLM alongside 22 other cryptocurrencies attracted the attention of crypto enthusiasts, especially members of the XRP community. The move triggered varied reactions from the XRP proponents.
While some XRP enthusiasts criticized the SEC for being responsible for the move, others seemed satisfied that the securities regulator was also attacking XLM.
Ripple and Stellar Relationship
It is interesting to note that Stellar (XLM) was created by Ripple’s co-founder Jed McCaleb. The prominent American programmer launched Stellar in 2014 after he left Ripple in 2013. Stellar competes with Ripple in terms of enhancing cross-border settlements.
Notably, McCaleb gained enormous profits by selling over 9 billion XRP allocated to him as a co-founder of Ripple. McCaleb emptied his XRP wallet in June 2022.
It bears mentioning that in December 2020, the SEC charged Ripple alongside two of its execs- Brad Garlinghouse (CEO) and Chris Larsen (co-founder and chairman) with conducting unregistered securities offerings via their past and continuous sale of XRP.
McCaleb Exempted in Ripple Lawsuit
Despite being a Ripple co-founder and having sold a massive amount of XRP for years, the SEC did not sue McCaleb. The exclusion of McCaleb in the Ripple lawsuit sparked rumors within the XRP community. Many speculated that McCaleb agreed with the SEC to provide vital information about the leading blockchain company in exchange for his protection. Interestingly, Mobarak also shared a similar sentiment in his recent tweet.
Meanwhile, CryptoLaw founder attorney John Deaton previously commented on the reason behind the exemption of McCaleb from the SEC vs. Ripple lawsuit. As reported in March, attorney Deaton said McCaleb was not included in the lawsuit because he is among the top industry stakeholders on “Crypto’s Mount Rushmore” list.