Ripple Considered Shutting Down and Distributing XRP to Shareholders After 2020 SEC Lawsuit

XRP-0.88%

According to Ripple CEO Brad Garlinghouse, the company seriously considered shutting down and distributing its XRP holdings to shareholders after the SEC's lawsuit in 2020. Garlinghouse and co-founder Chris Larsen chose to fight the SEC instead, a decision that preserved hundreds of jobs but cost Ripple approximately $150 million in legal fees over four years.

Ripple ultimately won the case after a federal judge ruled that XRP itself is not a security. The lawsuit was settled last year following leadership changes at the SEC, which adopted a more lenient stance on cryptocurrency.

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