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BlockchainThe decline of the third largest cryptocurrency, Ripple

The US financial regulator has raised allegations against Ripple co-founder Chris Larsen (left) and CEO Brad GarlinghouseJackson Hendry / PR / FFWD

Ripple was actually one of the greatest success stories in the crypto world, it was the third largest currency after Bitcoin and Ether. Two years ago, co-founder Chris Larsen briefly rose to become the fifth richest person in the world, ahead of Facebook founder Mark Zuckerberg.

Just a year ago, CEO Brad Garlinghouse – also a multibillionaire – announced an IPO and was able to win global financial players such as the major Swiss bank UBS, the Spanish Santander and American Express as partners. The company environment was otherwise dazzling: The former Minister of Economic Affairs and Defense, Karl-Theodor zu Guttenberg, came on board as a consultant in 2014 and actor Ashton Kutcher advertised Ripple extensively on the popular talk show Ellen in 2018.

The soaring came to an end a few days ago when the US financial regulator SEC raised serious allegations against Larsen and Garlinghouse. You are said to have violated the US Securities Act and also “personally enriched”. There have been many scandals in the crypto industry over the years, several times it ended in a conflict with the SEC. But this time it hits an industry leader. What are the consequences for the whole crypto scene?

Read the full story today on Finance Forward, the finance portal of Personal-Financial.com and OMR. You can register for the daily newsletter here.

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