Bitways Asset Management, one of the largest cryptocurrency fund managers, has abandoned XRP cryptocurrency entirely amid the regulatory backlash against Ripple.
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In an official press release on Wednesday, Bitways announced that its XRP deal has been liquidated because its fund is not investing in assets that are reasonably likely to be considered securities under securities laws Federal or state finance.
she continued, saying: Bitways' decision to liquidate its XRP deal was based on considering the new public information from the SEC complaint.
Bitways' cryptocurrency index fund was launched in 2017 to provide institutional investors with exposure to digital assets. Assets under management surpassed $ 100 million in October thanks to large inflows of advisers, households and hedge funds.
XRP prices have fallen over the past few days amid revelations that the US Securities and Exchange Commission is suing parent company Ripple for issuing an unregistered securities offering worth $ 1.3 billion .
The lawsuit, which was identified in a 71-page detailed complaint, is the culmination of a multi-year investigation by the Securities Regulatory Authority.
and the summary of the lawsuit reads: From at least 2013 to the present, the defendants have sold more than 14.6 billion units of digital assets called (XRP) in exchange for cash or whatever For another over $ 1.38 billion (USD), to fund Ripple operations and the enrichment of Larsen and Garlinghouse.
Bitways is not the only organization out of XRP trading, with smaller exchanges such as OSL, Bixie, and Crosstower either pausing trading or completely removing XRP from their offerings.
Brad Garlinghouse, CEO of Ripple, urges investors and employees not to worry about the lawsuit, but stresses that the legal battle can take a long time to finish.
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Meanwhile, Ripplenet has very few business operations in the United States, which could theoretically allow the company to move overseas. But Ripple has not indicated any such plans in the near term.
