US crypto exchange OKCoin is suspending XRP trading and deposits

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U.S. crypto exchange OKCoin is suspending XRP trading and deposits on January 4, 2021, until further notice.

Sharing the news exclusively with The Block on Monday, OKCoin said the decision was made in light of the recent lawsuit filed by the U.S. Securities & Exchange Commission (SEC) against Ripple two of its executives. 

The SEC claims that XRP is a security and alleges that CEO Brad Garlinghouse and co-founder Chris Larsen have raised more than $1.3 billion via an ongoing, unregistered securities sale of XRP.

"It is likely that this situation will take time to reach a resolution," said OKCoin. "We will proactively inform our customers when we have information that may change our position."

OKCoin CEO Hong Fang told The Block that it was a "business decision taken in the best interest of our customers pending further guidance from the SEC on the case with Ripple."

Besides suspending XRP trading and deposits, OKCoin is also asking users who have borrowed from the XRP/USD margin pair (including borrowing XRP and USD) to return the borrowed value before January 3. "Delays will trigger a liquidation by our systems to close the loan contracts," said the exchange.

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