Grayscale, the world’s biggest digital currency wealth manager, said it will liquidate the product and allocate the funds to its owners.
“In response to the SEC’s action, certain significant market participants have announced measures, including the delisting of XRP from major digital asset trading platforms, resulting in the Sponsor’s conclusion that it is likely to be increasingly difficult for U.S. investors, including the Trust, to convert XRP into U.S. dollars, and therefore continue the Trust’s operations.”
Grayscale removed XRP from the Grayscale Digital Large Cap Fund last week.
The SEC’s complaint charges Ripple, its Chief Executive Officer Bradley Garlinghouse and co-founder Christian Larsen of collecting more than $1.3 billion by selling XRP in an unregistered automated stock offering.
As a result of the litigation, at least 27 cryptocurrency companies have already withdrawn funding for XRP.
In a matter of weeks, Ripple General Counsel Stuart Alderoty told his Twitter that the company would file its initial response to the SEC’s allegations.
Garlinghouse says the company is looking forward to its day in court and to a change in leadership at the SEC.
“We’re on the right side of the facts and of history, and look forward to our day in court – as well as engaging with the new SEC leadership once appointed.”
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