Complaint: Ripple Labs, Inc. (“Ripple”), Bradley Garlinghouse (“Garlinghouse”), and Christian A. Larsen

VI. 
Defendants Failed to Register the Offering with the SEC
366. Defendants used interstate commerce for the Offering by, among other things, 
promoting investments in XRP in emails, interviews disseminated to the public through television 
and the Internet, and publicly available social media applications; and by effecting transfers of XRP 
and of the Offering proceeds through global digital asset trading platforms. 
367. Defendants have never filed a registration statement with the SEC with respect to 
any XRP they have offered or sold or intend to offer or sell, and no registration statement has ever 
been in effect with respect to any offers or sales of XRP. 
368. Ripple’s public disclosures contained selective or no information about Ripple’s 
financial history, audited financial statements, management discussion and analysis of its financial 
condition and results of operations, and ability to generate profits, and no information about 
Ripple’s ability to develop XRP into a substitute for certain financial transactions. Purchasers who 
bought or received XRP have not received any documents containing information about Ripple’s 
operations, financial condition, or other factors relevant in considering whether to invest in XRP.
XRP investors have also been deprived of information about how Ripple’s executives are being 
compensated as a result of the Offering or about Ripple’s use of funds derived from the sale of 
XRP. Nor have investors received complete information about any steps Ripple is taking to 
incentivize financial institutions to adopt XRP for use in a payment system, including the extent and 
nature of incentive payments made to businesses Ripple touts as market-driven “users” of its 
products, and about steps that Ripple takes in attempts to affect the trading price of XRP. In short, 
XRP purchasers and the market lack information that issuers provide under the Securities Act and 
the Exchange Act when they solicit public investment and foster a secondary market when their 
securities are publicly traded. 
 
Case 1:20-cv-10832 Document 4 Filed 12/22/20 Page 62 of 71

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