Crypto exchange OKCoin announced it would drop XRP following news that the US Securities and Exchange Commission would take legal action against Ripple.
In a blog post released today, OKCoin said the “best course of action” in response to the recent SEC lawsuit would be to suspend XRP trading and deposits. The exchange wrote that the suspension would take place in two days. Users who have borrowed XRP / USD through OKCoin “must return the loan value” by January 3rd. The following day, the exchange will suspend spot trading, margin trading and deposits for XRP.
“It is likely that this situation will take some time to resolve,” the OKCoin blog said. “We will proactively inform our customers when we have information that could change our position.”
OKCoin’s position follows the SEC exposes charges against Ripple as well as CEO Brad Garlinghouse and co-founder Chris Larsen on December 22. The committee alleges that the company and executives have been involved in an “unregistered, ongoing offering of digital asset securities” to investors since 2013 through the sale of the XRP token. Garlinghouse continued to respond saying the SEC “voted to attack crypto” and did “the opposite of” promoting innovation “in the United States.
Since the news of the SEC charges came out, the price of XRP has fallen by more than 36% some stock exchanges have announced that they will stop trading for the token, including OSL, Beaxy and CrossTower. Bitstamp’s digital asset exchange is also planning suspend XRP trading, but only for users in the US However, delete XRP on OKCoin – arranged at # 29 according to CoinMarketCap – could be a precursor for major exchanges to follow.
The SEC has sued @Ripple conducting an unregistered securities sale.
– Beaxy Exchange (@BeaxyExchange) December 22, 2020
At the time of publication, the price was from XRP was $ 0.28, down 3.5% in the last 24 hours.