Grayscale Investments is dissolving the Grayscale XRP Trust in light of the U.S. Securities and Exchange Commission’s lawsuit against Ripple.
Grayscale, which is the largest digital currency asset manager in the world, says it will liquidate the product and distribute the money to its shareholders.
“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 lawsuit accuses Ripple, its chief executive officer Bradley Garlinghouse and co-founder Christian Larsen of raising over $1.3 billion by selling XRP in an unregistered digital securities offering.
In the wake of the lawsuit, at least 27 cryptocurrency organizations have now dropped support for XRP.
Ripple general counsel Stuart Alderoty tells his Twitter following that the company will file its initial response to the SEC’s allegations in a matter of weeks.
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.”Don't Miss a Beat – Subscribe to get crypto email alerts delivered directly to your inbox
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