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

B. 
Overview of Ripple’s XRP Distribution 
78. 
Ripple’s planned distribution of XRP succeeded. 
79. 
From 2014 through the end of 2019, to fund its operations, Ripple sold at least 3.9 
billion XRP through Market Sales for approximately $763 million USD. 
80. 
From 2013 through the end of the third quarter of 2020, Ripple sold at least 4.9 
billion XRP through Institutional Sales for approximately $624 million USD, also to fund Ripple’s 
operations, for a total of at least $1.38 billion USD in Market and Institutional Sales alone. 
81. 
The market price for XRP—and Ripple’s sales prices in the Offering—ranged from 
a low price of approximately $0.002 per XRP in 2014 to a high price of $3.84 per XRP in early 2018, 
an increase of nearly 137,000%. XRP traded at approximately $0.58 USD per XRP as of last week. 
82. 
Ripple also undertook to achieve its goal of widespread distribution of XRP by 
exchanging XRP for non-cash consideration, such as labor and market-making services. Through 
the Other XRP Distributions, Ripple paid third parties to assist in its efforts to accomplish as 
widespread a distribution of XRP as possible and to attempt to develop a “use” for XRP. 
Case 1:20-cv-10832 Document 4 Filed 12/22/20 Page 14 of 71

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83. 
Since 2014, Defendants have disbursed at least 4.05 billion XRP (valued at at least 
$500 million USD when the XRP was distributed) through Other XRP Distributions. 
84. 
In addition, Larsen (beginning in 2015) and Garlinghouse (beginning in 2017) 
directly participated in the Offering by offering and selling their own holdings of XRP into the same 
market as Ripple’s Market Sales, typically following the same manner of sale. 
85. 
From 2015 through at least March 2020, while Larsen was an affiliate of Ripple as its 
CEO and later chairman of the Board, Larsen and his wife sold over 1.7 billion XRP to public 
investors in the market. Larsen and his wife netted at least $450 million USD from those sales. 
86. 
From April 2017 through December 2019, while an affiliate of Ripple as CEO, 
Garlinghouse sold over 321 million XRP he had received from Ripple to public investors in the 
market, generating approximately $150 million USD from those sales. 
87. 
Defendants offered and sold XRP to any person, without restricting offers or sales 
to persons who had a “use” for XRP (particularly given that little to no “use” existed until Ripple 
subsidized some “use” operations in recent months, as described below) and without restricting 
anyone’s ability to resell their XRP to investors within the United States or elsewhere. 
88. 
With respect to all four types of distribution (Market Sales, Institutional Sales, Other 
XRP Distributions, and Individual Defendants’ XRP Sales), Defendants understood that XRP 
purchasers routinely resold XRP to other investors in the United States and other countries. These 
resales aligned with Defendants’ own goals of achieving as widespread a distribution of XRP as 
possible, which was necessary to promote an aftermarket of buyers and sellers of XRP.
89. 
Defendants sold approximately 14.6 billion XRP, as summarized in Table 1, below. 
Case 1:20-cv-10832 Document 4 Filed 12/22/20 Page 15 of 71

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