January 20, 2021 Kraken to suspend XRP trading in the U.S. at the end of January

The cryptoasset exchange Kraken has announced that it will suspend XRP trading in the U.S. at the end of January. The move comes after a recent lawsuit by the U.S. Securities and Exchange Commission (SEC) against Ripple Labs Inc. and two of its executives. The lawsuit alleges that Ripple Labs engaged in unregistered security offerings of over $1.3 Billion. Ripple co-founder and former CEO Christian Larsen, and current CEO Bradley Garlinghouse, are said by the SEC to have “effected personal unregistered sales of XRP totaling approximately $600 million.” 

According to the press release by the SEC, “The complaint alleges that the defendants failed to register their offers and sales of XRP or satisfy any exemption from registration, in violation of the registration provisions of the federal securities laws.” 

Kraken is the latest exchange to suspend XRP trading, following similar moves by Coinbase, Bittrex, and Binance. Only U.S. customers will be affected by these rule changes, and Kraken has said that they are “monitoring the situation regarding the SEC’s filing and will adapt according to any new developments.”