A lawsuit against Ripple Labs brought Tuesday by the U.S. Securities and Exchange Commission (SEC) is already having knock-on effects.
- OSL, the first regulated digital asset trading and brokerage platform in Hong Kong, announced it is suspending trading in the XRP cryptocurrency at the heart of the SEC action.
- The platform tweeted Wednesday:
- The SEC is accusing Ripple of violating federal securities laws via sales of XRP to retail consumers.
- Ripple is said to have raised $1.3 billion over a seven-year period in ongoing sales of XRP to retail investors.
- According to CoinDesk's reporting, at least one U.S. exchange opted to delist the cryptocurrency ahead of the lawsuit's filing.
- "As part of OSL’s rigorous compliance program, digital assets are subjected to regular due diligence reviews to assess their suitability for trading on our platform," said Wayne Trench, CEO of OSL.
- Based on the results of the reviews, the firm may suspend trading in certain assets either temporarily or permanently, he said.