Brad
Garlinghouse, the Chief Executive Officer of Ripple Labs, a payment protocol
and exchange network, has slammed the US Securities and Exchange
Commission for allegedly using the company’s quarterly reports about its native
cryptocurrency, XRP, in the agency’s case against the crypto firm. Garlinghouse
stated this today (Wednesday) in a Twitter post, quoting the company’s XRP
quarterly report for the second quarter (Q2) of this year.
In the
Twitter post, the Ripple CEO noted that the company initiated the reports to
“voluntarily” provide updates about its XRP holdings. However, the securities
allegedly used them against the firm during the lawsuit process.
We began these reports to voluntarily provide updates given our XRP holdings. Sadly, they were used against us in the SEC lawsuit – however, we remain steadfast in our commitment to transparency but I suspect they’re going to look a bit different moving forward https://t.co/oANR6WCG09
— Brad Garlinghouse (@bgarlinghouse) August 2, 2023
“While
published in a good faith effort at transparency, these quarterly reports have
been weaponized against the company by the SEC. Ironic for an
agency that touts transparency and disclosure,” Ripple further said in the latest quarterly report published on Monday.
“Accordingly, Ripple is re-evaluating the role and contents of this report
going forward and will have updates on that front in Q3 2023,” the firm added,
reiterating its commitment to transparency.
Also
commenting, John Deaton, a lawyer known for being vocal about the SEC vs Ripple
case, tweeted on the issue, noting that “the SEC used the transparency of these
reports against Ripple and its two executives.”
“As a private
company, Ripple was under no obligation to share this info,” Deaton stated.
“Other companies not only didn’t share token sales but intentionally disguised
those transactions.”
It is absolutely true that the SEC used the transparency of these reports against Ripple and its two executives. As a private company, Ripple was under no obligation to share this info. Other companies not only didn’t share token sales, but intentionally disguised those… https://t.co/mbAO6feEfW
— John E Deaton (@JohnEDeaton1) August 2, 2023
In
mid-July, the US District Judge, Analisa Torres, delivered a landmark
judgment on the
SEC’s case against Ripple, ruling that the crypto firm’s sale of XRP tokens to
retain investors on public exchanges did not violate US…
