New reports claim investment firms Galaxy Digital and Jump Trading have cut ties with the crypto-asset XRP following Ripple’s billion-dollar lawsuit with the U.S. Securities and Exchange Commission (SEC).
According to a report by The Block, trading desks belonging to Galaxy Digital and Jump Trading have discontinued making markets in XRP following the bombshell lawsuit announced against parent company Ripple.
On December 23, the SEC published a press release detailing a $1.3 billion lawsuit against Ripple. The suit alleges that Ripple illegally marketed XRP to retail customers, with co-founder Chris Larsen and current CEO Brad Garlinghouse being accused of raising capital through the sale of an unregistered securities offering.
Following the announcement, multiple sources indicated that Mike Novogratz’s Galaxy Digital had cut ties with XRP, with a spokesperson saying, ‘we are not trading but will continue to evaluate as facts become available.’
Chicago-based high-frequency trading firm Jump Trading declined to comment on the development, but three industry sources told The Block the firm would no longer provide liquidity for XRP.
Featured Image Credit: Photo via Pixabay.com