Founder of crypto lender Celsius Network arrested, charged with fraud

Re:Founder of crypto lender Celsius Network arrested, charge... by Nursie on Thursday July 13, 2023 @09:31PM (#36718369)

I don’t think it’s clear from that case that XRP is not a security - “The SEC won a partial victory as Torres found the company's $728.9 million of XRP sales to hedge funds and other sophisticated buyers amounted to unregistered sales of securities.”

It seems more that selling it on exchanges was not a violation of the law, but some of the activities around it still were.

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Re:Founder of crypto lender Celsius Network arrested, charge... by DennisP on Friday July 14, 2023 @08:57AM (#36723311)

Conclusion of section 2: "the Court concludes that Ripple’s Programmatic Sales of XRP did not constitute the offer and sale of investment contracts."

If it's not an investment contract, it's not a security. That's one of the major points of the whole decision. Section 1 details ways that sales to institutional buyers did involve a contract.

The footnote just says the decision does not directly address exchanges. But it's hard to see how the arguments in section 2 wouldn't apply to exchanges just as well.

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Re:Founder of crypto lender Celsius Network arrested, charge... by Nursie on Friday July 14, 2023 @12:22PM (#36726130)

Sure - The point is it’s not as simple as “w00t Ripple won it’s not a security”, as the conduct of exchanges with respect to the token was explicitly not examined.

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