Hong Kong crypto exchange OSL suspends XRP trading until further notice

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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."

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. 

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May 5, 2022, 3:17PM UTC
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