Binance.US is suspending XRP trading. The major cryptocurrency exchange is not the only one to remove the token from its exchange as Ripple faces a lawsuit from the SEC.
Binance.US has announced suspending XRP trading in a blog post:
“Effective Wednesday, January 13, 2021 at 10am EST, XRP will be delisted from Binance.US. XRP trading and deposits will be suspended.”
While deposits will be stopped altogether, withdrawals will need what Binance has called a ‘Tag/Memo,” a unique identifier detailed in a separate post.
The announcement also says that clients who recently bought the token with an ACH/debit card can withdraw their funds beyond the holding period. Additionally, the Spark token airdrop will still apply. Details for how clients will claim for that are still unclear.
Coinbase, OKCoin, Bitstamp, Bittrex, and others have all made similar decision in the last few days, directly responding to the SEC’s allegations against Ripple. The lawsuit claims that the company profited $1.38 billion from selling unregistered securities.
On the other hand, major U.S. cryptocurrency exchange Coinbase seems to be getting its own share of legal saga, as the firm faces a class-action lawsuit for receiving commissions gotten from the sale of XRP tokens.
According to a court document, Thomas C. Sandoval, the plaintiff, has filed a class-action lawsuit against the San-Francisco based crypto exchange. The plaintiff alleged that Coinbase sold XRP as unregistered security and received commissions.
In the lawsuit filed in the Northern District Court of California, Sandoval, a Missouri resident, said that he bought XRP twice on Coinbase before the SEC lawsuit and paid the exchange platform a commission.
However, the Plaintiff alleged that Coinbase knew that XRP was a security but still went ahead to sell the token to its clients. Moreover, the lawsuit claims that the crypto exchange acted in violation of California’s Unfair Competition Law (UCL), stating:
“Defendant’s actions were also “unfair” as that term used in the UCL, in that by selling XRP securities Defendant gained an unwarranted competitive advantage over digital asset exchanges that only sold commodities. As a result of Defendant’s conduct, Coinbase received commissions from Plaintiff and all other Class members.”
In addition, the Plaintiff is seeking compensatory damages, attorneys’ fees, and any other relief as decided by the court.
The lawsuit comes on the heels of a recent announcement by Coinbase exchange to pause XRP trading on its platform. It revealed that it would halt trading of the token in January 2021. Meanwhile, Coinbase filed with the SEC to go public with an initial public offering (IPO). The IPO is reportedly valued at a whopping $28 billion.