Sharing the news exclusively with The Block on Monday, OKCoin reported that the decision had been taken in the light of the recent lawsuit brought by the United States. Securities & Exchange Commission (SEC) against two of its executives, Ripple.
The SEC maintains that XRP is a security company and alleges that CEO Brad Garlinghouse and co-founder Chris Larsen have earned more than $1.3 billion via the ongoing unregistered selling of XRP securities.
“It is likely that this situation will take time to reach a resolution,” said OKCoin. “We will proactively inform our customers when we have information that may change our position.”
OKCoin CEO Hong Fang told The Block that it was a “business decision taken in the best interest of our customers pending further guidance from the SEC on the case with Ripple.”
In addition to suspending XRP trading and deposits, OKCoin also asks users who borrowed from the XRP/USD margin pair (including borrowing XRP and USD) to return the borrowed value before January 3. “Delays will trigger a liquidation by our systems to close the loan contracts,” the exchange said.
At the time of publication, the price of XRP was $0.28, having fallen 3.5% in the last 24 hours.
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