One of the most valuable companies in the cryptocurrency industry has said it expected to be sued by the Securities and Exchange Commission (SEC) for violating investor protection laws.
The suit is expected to accuse the San Francisco company, Ripple, of selling unregistered securities when it sold the digital token XRP to investors around the world.
Brad Garlinghouse, Ripple’s chief executive, said in an interview that the SEC informed his company Monday that it planned to file suit this week. The suit, he said, would be against the company, Garlinghouse personally and one of the company’s founders, Chris Larsen.
XRP, like Bitcoin and many other cryptocurrencies, has been skyrocketing in value recently. All the outstanding XRP tokens were worth around $22 billion Monday, making it the third most valuable cryptocurrency after Bitcoin and Ether. The token has turned Larsen and Garlinghouse into billionaires.