Grayscale Investments dissolves the Grayscale XRP Trust in view of the lawsuit filed by the US Securities and Exchange Commission against Ripple.
Grayscale, the world’s largest digital currency wealth manager, has announced it will liquidate the product and distribute the money to its shareholders.
“In response to the SEC’s actions, some major market players have announced actions including the removal of XRP from major digital asset trading platforms, leading to the sponsor’s conclusion that it is likely to become increasingly difficult for US investors, including the trust will, to do so, convert XRP to US dollars and thus continue the trust’s operations. “
Grayscale removed XRP from the Grayscale Digital Large Cap Fund last week.
The SEC lawsuit accuses Ripple, its chairman Bradley Garlinghouse and co-founder Christian Larsen, of raising over $ 1.3 billion by selling XRP in an unregistered digital securities offering.
Following the lawsuit, at least 27 cryptocurrency organizations stopped supporting XRP.
Stuart Alderoty, General Counsel of Ripple, tells his Twitter that the company will be filing its first response to the SEC’s allegations in a few weeks.
Garlinghouse says the company is looking forward to its day in court and a change in leadership at the SEC.
“We’re on the right side of the facts and history and look forward to our day in court – and to working with the new SEC leadership once they’re appointed.”
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