Galaxy Digital, Jump Trading and Bitwise Abandon XRP
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Cryptocurrency bank by Mike Novogratz, Galaxy Digital Holdings Ltd., has suspended XRP trading until further notice following the filing of a lawsuit by the US Securities and Exchange Commission (SEC) against fintech company Ripple, iHodl Russia has learned.

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Galaxy Digital's spokesperson says the company is currently not trading XRP but will continue to evaluate "as facts become available." Novogratz's crypto bank is not the only one who cut ties with XRP as, Jump Trading, Bitwise Asset Management, Simplex, CrossTower and OSL also announced their suspension.

Bitwise also announced the liquidation of its XRP position under its own cryptocurrency index fund. The company says it does not want to invest in assets that are "reasonably likely to be deemed securities under federal or state securities laws."

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XRP's share in the Bitwise index fund was 3.8%, which is equivalent to $9.8 million. The proceeds were invested in other portfolio assets of the company, most of which are represented by bitcoin (EXANTE: Bitcoin) and ether (ETH).

As iHodl reported earlier, the US Securities and Exchange Commission (SEC) submitted a lawsuit against Ripple Inc., in which it accused the company of unregistered offering of securities. The SEC says Ripple undertook distribution of the XRP tokens without registering offers and sales of XRP with the SEC.

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