Ripple CEO Reveals Company Nearly Shut Down After 2020 SEC XRP Lawsuit

Ripple CEO Brad Garlinghouse said the company weighed the possibility of closing its operations after the U.S. Securities and Exchange Commission (SEC) initiated legal action against Ripple in 2020.

During discussions about the lawsuit, Garlinghouse said the firm examined alternatives such as distributing its XRP reserves among shareholders and notifying the regulator that it no longer held any XRP. However, Ripple ultimately chose to continue defending itself in the legal proceedings.

Garlinghouse said the decision to challenge the SEC’s case was also influenced by concerns that shutting down the company could have resulted in the loss of hundreds of Ripple jobs.

Source: KU Alumni