Ripple Abandons IPO Plans
Date: 2024-01-13 Author: Dima Zakharov Categories: BUSINESS
In a surprising turn of events, Ripple Labs has opted to abandon its long-anticipated IPO, opting instead for a series of share buybacks. Brad Garlinghouse, the CEO of Ripple, clarified that this decision was prompted by the protracted legal battle with the U.S. Securities and Exchange Commission (SEC) and the current market dynamics within the digital asset space.
As the SEC lawsuit nears its conclusion, Ripple Labs has chosen to repurchase shares from early investors and employees. This strategic move not only aims to boost the company's liquidity but also allows investors to sell their shares under favorable conditions.
Brad Garlinghouse stated that Ripple Labs intends to regularly conduct share repurchases in lieu of its previous plans to go public. This approach is expected to ensure continued liquidity for the company's assets and provide greater flexibility for its remaining investors.
In a positive development, the SEC voluntarily dropped all charges against Brad Garlinghouse and Chris Larsen, co-founder of Ripple Labs, related to alleged securities law violations. This decision brings a degree of clarity and resolution to Ripple's ongoing legal challenges.
