Blockmedia reorganized in chronological order from excerpts of price manipulation from a 79-page complaint filed by the SEC to the court.
# Garlinghaus and Larsen secured $600 million by selling Ripple
The SEC announced that three defendants, including Ripple, Garlinghouse, and Larsen, have sold 14.6 billion XRP of unregistered securities. Garlinghaus and Larsen are believed to have made $600 million in profits from the sale of Ripple.
The SEC said it sold Ripple while Garlinghouse said externally, “I’ll hold it for a long time.” The SEC alleged that this was illegal in which the defendant controlled Ripple Trading and selectively disclosed information.
Meanwhile, Ripple, Garlinghaus, and Larsen have protested that “we were not involved in the sale of Ripple.”
# Instructing Ripple sale timing, scale, etc.
The SEC said the defendant has played an important role as a whole in financing and managing Ripple liquidity by selling Ripple. They ordered market monitoring, trading timing, and buying and selling scale. In particular, Ripple trading was managed in detail and in detail even when Ripple was about to make an important public announcement related to its business. There was a company-led pumping and dumping.
# Ripple community trend check
Ripple’s systematic trading has been on since 2015. Ripple traded and sold Ripple through three or more market makers and agents. The following is one of those implementation examples.
April 11, 2016 : Instruction to buy Ripple on the open market. Target price of 0.008 dollars. Over the course of two days, the limit of 5% of the daily trading volume will be applied.
Aug 16, 2016 : Ripple employees report on ripple community trends. “There is positive feedback on Ripple’s long-term strategy,” he reported. This community is an online forum called’XRP Chat’.
Ripple’s Vice President of Finance sent an e-mail to Garlinghouse and Ripple Agents3 to “stop buying”.
Agent 3 said, “It is necessary to show that buying is coming in from an account that has been continuously selling only,” and said, “The buying effect is more intended to give market confidence than to move the price. That eventually drives the price.” Ripple purchase’option’ continued after email conversation.
A complaint filed amended by the SEC. This is what Lassen is instructing on adjusting the speed of the sale of XRP (Source = SEC).
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# Garlinghouse, direct execution instructions
September 2016 : Instructing market makers to buy and sell Ripple in detail at the time of the announcement of Ripple’s monthly business performance.
September 20, 2016 : Vice President Ripple sends an email to the market maker after discussions with Garlinghaus and Larsen. “Ripple wants to better understand the impact of buying Ripple over the past few weeks. Within 24 hours after business announcement A total of $300,000 should be mobilized to buy Ripple.Has an idea.”
The market maker replies the next day. Transmit data showing the correlation between the Ripple buy operation and the Ripple price. Reported that “there is a statistically significant effect.”
Friday, September 23, 2016 : The vice president instructs the market maker after discussing with Garlinghaus and Larsen. “Garlinghouse said go ahead. Keep buying lightly the day after the announcement, then start bigger on Sunday.” Market Maker Agree.
# “If you have a chance, take your money out”
Monday, September 26, 2016 : The market maker reported that “I spent 200,000 dollars.” Said to buy more to create a stronger market. Ripple Vice President Agree.
Oct 15, 2016 : Ripple Vice President inquired about the timing of the 1% sale, saying, “I want to sell 1% of the trading volume of Ripple.” The vice president said, “I want to capitalize on additional trading volumes rather than pressure the ripple rally.”
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