Binance US decided to suspend all XRP trading on its platform, making it the 14th exchange to do so after Ripple got hit with a lawsuit by the US SEC commission for selling unregistered XRP Tokens. In our latest Binance news, we take a closer look at what happened.
Binance US decided to suspend all XRP trading and announced to its US customers that they will not be able to buy or sell XRP coins starting from January 13th, 2021, becoming the 14th exchange to do so. Other crypto exchanges that delisted or stopped XRP trading on their platforms include Bittrex, Beaxy, Bitwise, Coinbase, Crypto.Com, Galaxy Digital, Crosstower, OKCoin, OSL, Swipe wallet, Wirez, Jump Trading, Swipe Wallet, and Ziglu.
The SEC lawsuit against Ripple said that the executives have sold unlawfully billions worth of XRP coins to fund their businesses and themselves and the latter figure estimated at $600 million. Among the few other damaging claims, the lawsuit noted that Ripple awarded $150,000 to “top three traders” on an unknown exchange back in 2017 who ended up driving up the volume of the coin. This was considered by the company to help create momentum for the token and to raise the price higher. A pretrial date was set for February 22, 2021, according to the public court documents.
In the meantime, Ripple hit back at the SEC claims and said:
“The public and press have only heard the story from the SEC’s side, and we’ll be filing our response in a few weeks to address these unproven allegations against Ripple.”
Ripple added that it will continue operating and will offer the products for US citizens in American markets despite the lawsuits and made it clear that most of the XRP volume came from countries that are outside of the US which have better regulation, for example, Japan or Singapore. The price of XRP decreased by almost 70% over the past month and it is now down by 94 percent from its all-time high set in 2018. Some analysts believe that when the first hearing passes, there is a strong chance that Ripple’s XRP will rebound. Its founders believe that the lawsuit was unfair and that they are willing to fight it and prove once again that Ripple is a valuable crypto asset, with many advantages over others.
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