Chris Larsen Pushes to Clear Name from SEC Lawsuit over XRP

The legal counsel of Chris Larsen, Ripple Ripple Ripple was co-founded by Jed McCaleb and Chris Larsen and was debuted in 2012 as both a digital disbursement network and a pre-mined digital coin denoted as XRP. Possessing less market cap than both Bitcoin and Ethereum, Ripple ranks as the third-largest cryptocurrency.Its dual open-source and peer-to-peer (P2P) decentralized platform whose network is capable of working with any form of money such as GBP, Ethereum, Yen, etc. What is Ripple Used For? Known as a gateway, participants of Ripple may Ripple was co-founded by Jed McCaleb and Chris Larsen and was debuted in 2012 as both a digital disbursement network and a pre-mined digital coin denoted as XRP. Possessing less market cap than both Bitcoin and Ethereum, Ripple ranks as the third-largest cryptocurrency.Its dual open-source and peer-to-peer (P2P) decentralized platform whose network is capable of working with any form of money such as GBP, Ethereum, Yen, etc. What is Ripple Used For? Known as a gateway, participants of Ripple may Read this Term’s Executive Chairman, is trying to remove Larsen's name from the Securities and Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term Commission’s lawsuit against Ripple over the sale of XRP, which the regulator alleges to be an unregistered security.

In a letter to Judge Analisa Torres at the US District Court for the Southern District of New York on Wednesday, the legal representative filed a motion to dismiss charges against Larsen, questioning the merits of the SEC’s allegations.

The US regulator moved against Ripple and its two executives Brad Garlingohouse and Chris Larsen for raising $1.3 billion by selling XRP, which, according to the lawsuit, falls under the category of unregistered securities.

No Solid Evidence

“Defendants believe that the SEC will be unable to demonstrate that transactions in XRP constitute securities because, among other reasons, they possess none of the attributes of ‘investment contracts’,” the letter stated.

The legal mind is trying to squash the regulator’s central claim that Larsen ‘knowingly or recklessly provided substantial assistance to another person’ to violate the US Securities Act by selling the unregistered securities.

The letter stressed that the SEC failed to establish Larsen’s knowledge of XRP being a security while selling them. It highlighted that recognition of the Department of Justice and the FinCEN of XRP being a virtual currency and also highlighted the SEC’s previous description of Ripple as a ‘digital currency company’.

“At a minimum, the SEC must allege that it was ‘so obvious’ that XRP transactions were securities and Ripple’s conduct was improper that Mr. Larsen ‘must have been aware of it',” the letter added.

In addition, it questioned the US regulator’s jurisdictional authority as the allegations failed to establish that the XRP tokens were sold within the United States.

“In the face of these undisputed facts, which affirmatively establish the absence of knowledge or recklessness, the SEC offers only conclusory and legally insufficient allegations that Mr. Larsen knew or recklessly disregarded that Ripple’s conduct was in any way improper,” the legal counsel noted.