Crypto asset manager Bitwise liquidated the XRP position of the crypto index fund. Bitwise said the move was carried out in light of the US Securities and Exchange Commission (SEC), claiming XRP is a security. The SEC accused Ripple and its two executives – CEO Brad Garlinghouse and co-founder Chris Larsen – of earning more than $ 1.3 billion in revenue through unregistered securities sales as XRP.
Bitwise said the crypto index fund “does not invest in assets that are reasonably likely to be considered securities under federal or state securities laws.” XRP held a 3.8% share in Bitwise’s crypto index fund before liquidation. In light of the lawsuit allegations, several cryptocurrency exchanges, including OSL, CrossTower, and Beaxy, stopped trading XRP.