The Securities and Exchanges Commission has filed a trial against Ripple and it’s two cofounders Brad Garlinghouse and Lars Nielsen for raising in excess of $1.3B through an “unregistered, ongoing digital asset securities offering” of their XRP coin and for not declaring their personal coin sales in excess of $600 million.

Ripple was founded in 2013 and benefited from 5 investment rounds from big investments funds, companies and banks. Ripple has issued 100 billion XRP and made Brad and Nielsen billionaires thanks to their shares in the company and to their XRP holdings since the value of the XRP increased from $0.0006 in 2017 to $0.47 before the announcement of the trial, currently trading at around $0.37. Garlinghouse was aware of the imminent trial and has announced this in advance so investors were aware of the possible drop in value of XRP and started selling before the official SEC announcement.

Ripple is well known for their payment system which is much faster than Bitcoin.

We will have to see now the impact of this trial on the value of XRP but most importantly on the crypto market in general although some people involved in the crypto-currency markets are not considering XRP a real crypto-coin, only the time will tell.