SEC (Securities and Exchange Commission) lawsuit against Ripple will last for years, but the prospect for Bitcoin Evolution the fintech company is worse than in similar cases with EOS or Kin tokenseals. That’s the view expressed by Cinneamhain Ventures partner Adam Cochran.
In a series of tweets, he cited a number of factors supporting his conclusion:
The company is registered in the US and is fully subject to SEC jurisdiction;
unlike the ICOs conducted by Block.one (EOS) and Kin (Kin), the SEC believes that Ripple continues to violate the law by selling XRP tokens, which the regulator has classified as unregistered securities;
The Commission pointed to the centralised practice of selling XRP;
SEC included Ripple executives in the lawsuit, which it usually does in fraud cases.
„EOS was lucky with the settlement, the ambiguity of interpretation and the fact that it was no longer recognised as a security. It’s the same with Kin. However, for projects like UnikoinGold, the blow proved fatal,“ Cochrane stressed.
Block.one, the company behind the EOS project, last year reached an agreement with the SEC to pay a $24 million fine for violating US securities laws. With messenger developer Kik, the regulator settled a similar lawsuit with a $5 million fine.
The Unikrn project, in addition to paying $6.1 million, agreed to block UnikoinGold (UKG) tokens and remove them from all exchanges. The fine amounted to almost all of the startup’s funds.
On 22 December, the SEC filed a lawsuit against Ripple CEO Brad Garlinghouse and co-founder Chris Larsen, accusing them of violating securities laws.