Ripple Estimates Investors Lost $15B Due to SEC Actions
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March 5, 2021

Fintech startup Ripple has just filed a formal response to the US Securities and Exchange Commission's (SEC) amended complaint during the ongoing proceedings.

According to the company, the regulator's filing of a complaint was enough to cause significant harm to XRP token holders and force many service providers in the cryptocurrency sector to abandon the asset. Ripple estimates losses to "those it purports to protect" as high as $15B. At the same time, the SEC has accused Ripple of illegally selling $1.3B worth of unregistered securities.

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Ripple also claims the SEC is ignoring or misrepresenting facts, such as claiming that token sales were a "significant part" of the XRP market. The company claims these transactions accounted for less than 0.4% of the total transaction volume at nearly every stage of this market's existence. Ripple also claims:

"Ripple did not sell or distribute XRP as an investment contract."

The company has also stressed it does not have sufficient information about the violations of its CEO Brad Garlinghouse, so it also rejects the charges brought against him. A lawyer for Ripple has asked on Twitter to be contacted by companies that have met with the SEC and tried to find out if XRP is a security, but have not received a response.

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