Reportedly San Francisco headquartered fintech firm Ripple purchased some stakes in the Bitstamp crypto exchange.
Bitstamp is a popular crypto exchange. This exchange is standing at 7 rank by 24-hour crypto trade volume on its platform. In 2011, this exchange was founded by Nejc Kodrič & Damian Merlak. In 2015, the exchange faced a very big hack attack & lost nearly 19,000 BTC.
Recently Galaxy Digital published its First Quarter 2023 report and confirmed that Ripple purchased some significant stakes in the Bitstamp crypto exchange.
Galaxy Digital confirmed that it advised Pantera Capital to sell some stakes to the Ripple firm, in Q1 of this year.
Here it is still unconfirmed the amount of the stakes that Ripple purchased but it is confirmed that Ripple successfully stepped toward the European crypto market amid regulatory tension & legal dispute in the US.
XRP price action
XRP is a native coin on the XRP Ledger (XRPL), a Proof-of-stake (PoS) blockchain network. The current trade price of the XRP token is $0.45 & it seems that the latest news failed to impact the trade price.
Ripple vs SEC
At present, Ripple firm is trying to expand its business operations outside the US because of the legal tensions with the United States Securities and Exchange Commission (SEC).
In Dec 2020, the SEC body initiated a lawsuit against this blockchain firm and alleged that the company violated Federal securities law because its operations violated securities laws.
The whole case is dependent on the fact of whether XRP coin is a security or not.
Recently the court ordered the SEC agency to release a document, in which former SEC Commissioner William Hinman stated that Ethereum was a security.
It is expected that Ripple’s defence lawyers will use that document to prove that XRP is not security & possibly Ripple will score a very big victory in the case.
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Ripple acquires Bitstamp’s stakes ahead of EU expansion plans