The Luxembourg-based cryptocurrency exchange Bitstamp has announced suspension of all trading and deposits of XRP for its US customers on 8 January 2021 at 9 PM UTC. The exchange says its US customers will still be able to withdraw XRP from Bitstamp.
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Customers from other countries are not affected.
Earlier iHodl reported that Galaxy Digital Holdings Ltd., also suspended XRP trading until further notice following the filing of a lawsuit by the US Securities and Exchange Commission (SEC) against fintech company Ripple.
Galaxy Digital's spokesperson said the company is 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."
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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