SEC Accuses Ripple of Using Trading Bots to Manipulate XRP Price
Date: 2024-03-01 Author: Dima Zakharov Categories: BUSINESS
SEC Allegations
The US Securities and Exchange Commission (SEC) has made startling allegations against Ripple, suggesting that the company employed trading bots from GSR Markets to manipulate trading activity and uphold the value of XRP.
Manipulative Practices
According to the SEC, Ripple systematically utilized trading bots such as XRP 2t 6t to execute anonymous transactions, artificially preventing significant decreases or fostering increases in the market price of XRP.
Analysis and Findings
The SEC's suspicions stem from analyses of various analytical resources, including trading bot directives and historical XRP price information. Instances were noted where Ripple's GSR trading bot directives coincided with upward movements or halted declines in XRP prices.
Ripple's Response
Ripple's substantial holdings in XRP and the apparent sluggishness in the growth of digital asset prices compared to rival cryptocurrencies have further fueled the SEC's suspicions.
Legal Ramifications
The SEC believes that Ripple's strategy and the value of XRP failed to meet the expectations of the cryptocurrency community. The use of trading bots allegedly misled investors and created an illusion of trading activity.
Legal Battles
Previously, a new class-action lawsuit was filed in the Northern District Court of California, alleging that Ripple violated federal and Californian securities laws by selling XRP without proper registration with regulators.
