Binance US is the Latest Crypto Exchange to Suspend XRP Trading

Binance has announced that they are going to suspend trade of XRP from January 13, 2021, for its US customers. With this suspension, Binance became the latest and 14th cryptocurrency exchange to delist XRP. The other thirteen exchanges that delisted XRP include Beaxy, Bittrex, Bitwise, Coinbase, Crosstower, Crypto.com, Galaxy Digital, Jump Trading, OKCoin, OSL, Swipe Wallet, Wirex, and Ziglu. 

This slew of XRP trading suspension from 14 crypto exchanges including Binance came as a response to the U.S. Securities and Exchange Commission’s (SEC) lawsuit filing against its Ripple and its two top executives alleging that they have unlawfully sold billions worth of XRP for funding their business as well as their own pockets. SEC alleged that the illegal selling of XRP by the top executives resulted in their personal profit estimating to US$600-million. 

The SEC lawsuit also claimed that back in 2017, Ripple awarded US$150,000 to the top 3 traders of a certain crypto exchange who most contributed to the increasing volume of XRP coin. It alleged that this increased buying by these top traders were considered by the company as a momentum building measure, thereby increasing the price higher. 

Public court documents show that a pretrial date has been set for February 22, 2021. Ripple has said that they are going to “address these unproven allegations”. In a statement, Ripple countered SEC’s version by saying: “The public and press have only heard the story from the SEC’s side, and we’ll be filing our response in a few weeks to address these unproven allegations against Ripple.”

The company has also said that despite the SEC lawsuit they will continue operating and offering their products for US citizens and in the American markets. They made it clear that their operations will remain unaffected because most of their XRP volumes came from countries outside the United States. They also said that countries such as Singapore and Japan have provided them with better regulation. 

Over the last one month, XRP’s price against the US Dollar (XRP/USD pair) has dropped by almost 70% from US$0.622619 to US$0.220003. In terms of market cap, XRP’s current ranking is 4th, after Bitcoin (BTC), Ethereum (ETH), and Tether (USDT). Even after a drop of -16.58% in the last 7-days, its market cap is US$9,995,317,462 currently.