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The US Securities and Exchange Commission (SEC) lawsuit against Ripple will take years, but the prospects for the fintech company are worse than in similar cases regarding EOS or Kin tokens. This opinion was expressed by the partner of Cinneamhain Ventures Adam Cochran.
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If you are a casual observer and are a bit unclear why the $ XRP case is worse for Ripple than cases against $EOS, $KIN and others were, here is a quick summary:
— Adam Cochran (@AdamScochran) December 23, 2020
In a series of tweets, he cited a number of factors supporting his conclusion:
- the company is registered in the United States and fully falls under the jurisdiction of the SEC;
- Unlike ICOs conducted by Block.one (EOS) and Kin (Kin), the SEC believes that Ripple continues to violate the law by selling XRP tokens that the regulator has classified as unregistered securities;
- The Commission pointed to a centralized XRP selling practice;
- The SEC has included Ripple executives in the lawsuit, which it usually does in cases involving fraud.
“EOS was lucky with the settlement, the ambiguity of interpretation and the fact that it was no longer recognized as a security. It’s the same with Kin. However, for projects like UnikoinGold, the blow was fatal, ”Cochran said.
Block.one behind the EOS project last year came to an agreement with the SEC to pay a $ 24 million fine for violating US securities laws. With messenger developer Kik regulator settled a similar lawsuit with a fine of $ 5 million.
The Unikrn project, in addition to paying $ 6.1 million, agreed to block UnikoinGold (UKG) tokens and remove them from all exchanges. Fine made up almost all funds startup.
Recall December 22 SEC filed a claim against Ripple, CEO Brad Garlinghouse and co-founder Chris Larsen, accusing them of violating securities laws.
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