Hong Kong-based crypto exchange OSL has suspended all XRP trading and payment services until further notice.
OSL tweeted on Wednesday: “Please note: In light of US Securities & Exchange Commission’s enforcement action against Ripple Labs & 2 of its executives, we have suspended all #XRP payment in and trading services on the OSL platform, effective immediately and until further notice.”
The SEC on Tuesday filed a complaint alleging that Ripple and its CEO Brad Garlinghouse and co-founder Chris Larsen have raised more than $1.3 billion via ongoing, unregistered securities XRP sales. The American financial watchdog considers XRP a security.
The complaint said, “Ripple engaged in this illegal securities offering from 2013 to the present, even though Ripple received legal advice as early as 2012 that under certain circumstances XRP could be considered an ‘investment contract’ and therefore a security under the federal securities laws.”
Ripple believes the SEC has no legitimate case and is preparing for a legal fight. It said the SEC’s assertion that XRP is a security is “wrong on the facts, the law and the equities.”
Two more crypto exchanges, CrossTower and Beaxy, have suspended XRP trading. CrossTower said it has delisted XRP only on its US trading platform, and Beaxy said it has halted XRP trading, but withdrawals are enabled until further notice, The Block reports.
Prominent crypto commentator Max Keiser said Coinbase, America’s biggest crypto exchange, will likely drop XRP on Friday because continuing to list it could put the kibosh on its plan to go public.
Keiser tweeted: “@coinbase will have a tough time going public unless they dump XRP off their exchange. Rumor is they’ll delist it on Friday. And this will trigger other exchanges to follow. As I’ve said for years, XRP is an exit scam worth $0″
He then speculated: “Bitcoiners inside the SEC are killing off shitcoins”
At the time of publication, XRP was priced at $0.26, down 51% in 24 hours, according to CoinMarketCap.