To avoid any legal trouble, cryptocurrency exchanges began to delist Ripple’s XRP token as the US securities regulator moved against it. Three digital currency trading platforms that have delisted the troubled cryptocurrency are OSL, CrossTower, and Beaxy.
The delisting started hours after the announcement of the Securities and Exchange Commission’s lawsuit against Ripple; the company’s executive chairman, Chris Larsen and Brad Garlinghouse, its current CEO.
The market watchdog is alleging the blockchain company of selling unregistered securities to investors and illegally raising $1.3 billion since 2013.
Will Major Exchanges Delist XRP Too?
The delisting did not come as a surprise as many industry proponents pointed out and justified such moves by crypto exchanges.
Though Hong Kong-based OSL was the first to delist the controversial cryptocurrency after the announcement of the lawsuit, CrossTower was proactive enough to delist XRP even before the official confirmation.
“Given the uncertainty regarding XRP’s status, CrossTower has decided to delist XRP,” CrossTower President, Kristin Boggiano, said in a statement.
OSL and Beaxy both tweeted about their suspension of XRP trading, and the decision will be effective “until further notice.”
However, major exchanges are yet to react to the lawsuit against Ripple.
The market performance of XRP is being affected by the news about the lawsuit. As of press time, the token has lost nearly 30 percent over the past 24 hours and trades at $0.337 per coin. Tether also took Ripple over as the third largest cryptocurrency in terms of market capital.