Hong Kong crypto exchange OSL suspends XRP trading until further notice

Ripple • December 23, 2020, 5:55AM EST
UPDATED: December 23, 2020, 6:42AM EST
The Block

Hong Kong-based licensed crypto exchange OSL has suspended all XRP trading and payment services until further notice.

OSL announced the news on Wednesday, saying that it has taken the decision in light of the U.S. Securities & Exchange Commission's (SEC's) enforcement action against Ripple and two of its executives — CEO Brad Garlinghouse and co-founder Chris Larsen.

The SEC yesterday filed a complaint and alleged that Ripple and the executives have raised more than $1.3 billion via ongoing, unregistered securities XRP sales. The regulator deems XRP as a security.

It said in the complaint: "Ripple engaged in this illegal securities offering from 2013 to the present, even though Ripple received legal advice as early as 2012 that under certain circumstances XRP could be considered an 'investment contract' and therefore a security under the federal securities laws."

THE SCOOP

Keep up with the latest news, trends, charts and views on crypto and DeFi with a new biweekly newsletter from The Block's Frank Chaparro

By signing-up you agree to our Terms of Service and Privacy Policy
By signing-up you agree to our Terms of Service and Privacy Policy

Ripple plans to fight the case. The company has said that the SEC's theory that XRP is a security is "wrong on the facts, the law and the equities."

Two more crypto exchanges, CrossTower and Beaxy, have suspended XRP trading. CrossTower said it has delisted XRP only on its U.S. trading platform, and Beaxy said it has halted XRP trading, but withdrawals are enabled until further notice.

XRP is currently trading down by about 30% at around $0.32 on Coinbase, according to TradingView. 

TAGS
XRP

About Author

Yogita Khatri is a senior reporter at The Block, covering all things crypto. As one of the earliest team members, Yogita has played a pivotal role in breaking numerous stories, exclusives and scoops. With nearly 3,000 articles under her belt, Yogita holds the records as The Block's most-published and most-read author of all time. Prior to joining The Block, Yogita worked at crypto publication CoinDesk and The Economic Times, where she wrote on personal finance. To contact her, email: [email protected]. For her latest work, follow her on X @Yogita_Khatri5.

More by Yogita Khatri