Ripple Chairman Denies Knowing XRP Sales Could Be a Violation

Key Takeaways

  • Chris Larsen filed a “motion to dismiss” with the U.S. District Court for the Southern District to discharge him from the ongoing lawsuit. 
  • Larsen’s lawyers said SEC failed to show Larsen was culpable for intentionally selling securities.

Ripple’s executive chairman and ex-CEO, Chris Larsen, has demanded that the SEC dismiss its lawsuit. 

Motion to Dismiss Ripple Lawsuit

Lawyers representing the former CEO of Ripple have filed a “motion to dismiss” with the U.S. District Court for the Southern District of New York to discharge him from the ongoing lawsuit. 

Chris Larsen and current CEO Brad Garlinghouse first faced legal troubles when the American Securities and Exchange Commission (SEC) filed a legal complaint against them for selling unregistered securities worth $1.3 billion. 

In a legal document submitted to Judge Analisa Torres, Larsen’s lawyers reasoned why the lawsuit was not valid. The motion to dismiss focused on a recently amended complaint in which the SEC charged Larsen and Garlinghouse for aiding and abetting Ripple’s violation of the Securities Act of 1933

In the document, lawyers argue that to prove this claim of abetment, the SEC would need to prove Larsen’s intent or knowledge of wrongdoing, also called Scienter.

The document claimed Larsen had no knowledge that XRP sales constituted investment contracts, and the SEC failed to demonstrate that Larsen knew he was selling an unregistered security.

“The SEC has failed to plausibly allege that Mr. Larsen had the requisite state of mind for aiding and abetting under Section 15(b) of the Securities Act,” the document reads.

It is to be noted that besides Larsen’s personal appeal, Garlinghouse, who is the other defendant in the case, has also filed a similar motion to dismiss with the Court.

Disclosure: The author did not hold crypto mentioned in this article at the time of press.

The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.

You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.

See full terms and conditions.

Source: Read Full Article