Digital investment giant Grayscale has not unloaded more than 9 million XRP following the announcement of a lawsuit against parent company and payments platform Ripple, despite what some data aggregators and news outlets indicate.
On December 22, the United States Securities & Exchange Commission (SEC) announced a massive lawsuit against Ripple over the alleged sale of XRP as an unlicensed security. The complaint named Ripple CEO Brad Garlinghouse and co-founder Chris Larsen as defendants in the lawsuit, saying both parties were involved in the sale of an asset that should have been registered as a security.
The price of XRP fell more than 35% in the aftermath of the announcement, with multiple investment firms including Galaxy Digital and Jump Trading cutting ties with the crypto-asset.
According to a tweet by crypto trader and automation expert Nico, Grayscale seemingly had joined other investment firms by dumping more than 9 million XRP on December 29. The tweet quoted data from aggregators that seems to have been faulty.
The dump would suggest Grayscale unloaded most of its XRP holdings. Speaking to Cointelegraph, however, a representative for the digital asset management firm said:
Statements about large sales of underlying assets by any of our investment products are false and inaccurate. Any perceived large decrease in the USD value of Grayscale XRP Trust would have been a result of a decrease in the USD price of XRP.
Grayscale, a fully regulated investment firm under the SEC, has been adding hundreds of millions in cryptoassets over the last month as institutions keep investing in the crypto space.
Featured Image Credit: Photo via Pixabay.com