Ripple CEO responds to major SEC allegations

Brad Garlinghouse, head of Ripple, responds to the main SEC allegations.

In a recent Twitter thread, Ripple CEO Brad Garlinghouse raised some of the “unsubstantiated allegations” set out in the SEC’s lawsuit against the company last month. He claims he cannot go into details publicly, but decided to mention key issues nonetheless.

Garlinghouse says Ripple has no control over which exchanges list or de-list XRP, claiming it is “open and decentralized.” Following a lawsuit by Tetragon, Ripple’s key shareholders, Garlinghouse is confident that their investors still have faith in the company.

In addition, he argues that the company’s financial incentives to partners using its On Demand Liquidity (ODL) product are “completely legitimate”:

We have given some customers, especially early adopters, the incentive to use ODL – this is Pay Network 101 (and completely legal). Every payment network (PayPal, Visa, MC, and so on) has or still has incentives.

Ripple will provide a formal legal response “within weeks”, Garlinghouse said:

The lawsuit can be slow! Everything may seem calm, but there is a lot going on behind the scenes. We will provide our first response within a few weeks.

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