Ripple CEO says SEC suit nearly pushed company to shut down
Ripple CEO Brad Garlinghouse stated he and co-founder Chris Larsen severely thought of shutting the company down after the SEC sued in 2020 and distributing Ripple’s XRP holdings to shareholders.
In a KU Hustle interview, Garlinghouse stated they selected to battle as an alternative as a result of closing Ripple would have price a whole bunch of jobs. He estimated the four-year authorized battle price the company about $150 million. The state of affairs involved Ripple as a company, reasonably than a shutdown of the XRP Ledger or a lack of XRP held by the general public.
We virtually determined to shut down the company when the SEC sued us. We we have been like uh you understand like the federal government has infinite energy and sources.
The SEC’s August 2025 litigation release dismissed their respective appeals, resolving the enforcement motion. However, the district courtroom’s last judgment remained in impact, together with a $125.04 million civil penalty and an injunction in opposition to Ripple.
Garlinghouse stated Ripple and Larsen had thought of winding down the company and distributing its XRP holdings to shareholders on a professional rata foundation. They selected to proceed working and battle the case, a call Garlinghouse stated preserved a whole bunch of jobs however in the end price about $150 million in authorized charges.
A company determination with XRP on the heart
Ripple fairness, XRP held by Ripple, the XRP Ledger, and XRP held by the general public are various things. The plan Garlinghouse described involved dissolving Ripple and distributing the company’s XRP holdings to its shareholders. It didn’t indicate that the ledger would shut down or that XRP held by the general public could be transferred or misplaced.
Ripple may have shut down and the XRP Ledger nonetheless would have saved working. Garlinghouse wasn’t making a name on XRP’s worth or suggesting the community or present holders could be affected by the company’s destiny.
Ripple’s XRP reserve gave the company a method out if it selected to shut down. Instead, management stayed the course, accepting years of litigation and mounting authorized payments in trade for retaining the enterprise alive.
The interview stops wanting saying Ripple’s XRP reserve paid for its protection. What it reveals is the leverage that reserve gave its leaders when the selection narrowed to preventing on or shutting down.
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