Ripple has filed a formal response to the amended lawsuit by the US Securities and Exchange Commission (SEC) during ongoing proceedings.
According to the company, filing a SEC lawsuit was enough to cause significant damage to XRP holders and force many service providers in the cryptocurrency industry to refuse to work with the token. Ripple estimates the losses of “those whom the SEC should protect” at $ 15 billion. The SEC accuses the company of illegal sale of securities worth $ 1.3 billion.
In the 100-page document, Ripple also states that the SEC is ignoring or falsifying facts, such as claiming that its XRP sales were an “important part” of the XRP market. The company writes that such transactions accounted for less than 0.4% of the total volume of transactions at almost all stages of the existence of this market.
In conclusion, Ripple completely denies its guilt:
“Ripple did not sell or distribute XRP as an investment contract.”
The company also notes that it does not have sufficient information about the violations of its CEO Brad Garlinghouse, so it also rejects the charges on the relevant counts. On Twitter, a Ripple lawyer urged companies to contact them, whose representatives met with the SEC and tried to find out if XRP is a security, but did not receive a response.
Ripple’s business, meanwhile, continues. On Wednesday, the firm talked about testing a private version of the XRP ledger for use by central banks. According to the Ripple blog post, it is poised to “provide central banks with a secure, controlled and flexible solution for issuing and managing digital currencies.”
“We are currently in dialogue with central banks around the world to better understand their goals and assess how a private ledger of central bank digital currencies can help achieve those goals. We believe our solution will help overcome the major challenges in creating and managing sovereign digital currencies, while increasing value and benefits for central banks, their partners and, most importantly, for the millions who will use such digital currencies, ”the company writes.