Ripple makes the former US Treasurer in spite of the lawsuit it currently faces.
The payments firm for crypto named a new CFO.
The blockchain tech company best known for its connection with XRP. Ripple announced on Tuesday morning that former US Treasurer Rosie Rios recently joined its board of directors.
The company also declared that Kristina Campbell. She is an executive with previous experience from PayNearMe and Green Dot, has been named CFO.
The news comes amid a difficult time for the company. Ripple and two of its leading executives have been sued by the SEC by the end of 2020. And the charges said that the sales of XRP approximated to a $1.3 billion unregistered securities offering.
Ripple’s ‘Hot Water’ with the SEC
The SEC filed a lawsuit against Ripple Labs, is also against co-founder Christian Larsen and official CEO Brad Garlinghouse.
The lawsuit alleged that Ripple raised $1.3 billion in unregistered securities offerings ever since 2013. Security is an investment contract, and if the creators of a cryptocurrency endorsed it as an investment to US buyers, then the SEC considered the coin to be a security under the law of the US.
Ripple’s New Board of Director
“Ripple is one of the best examples of how to use cryptocurrency in a substantive and legitimate role to facilitate payments globally,”
former US Treasurer Rosie Rios
Without a doubt the words “substantive” and “legitimate” have been chosen very carefully. After a round of minor court victories, Ripple filed a motion to dismiss the lawsuit in total.
XRP has been created by Ripple’s founders, and it has been originally conceived as a way to help financial institutions transact money. In the last decade, it has evolved into one of the most valuable tokens in crypto. The price recently shot up by 17% early this week as the traders start to speculate about a probable Ripple IPO.
It seems that the XRP faithfuls do not care about the SEC lawsuit, but Ripple’s business partners really do – XRP has been delisted from some of the major crypto exchanges, and the wire transfer service MoneyGram ended its partnership with Ripple in March.
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