Ripple considered shutdown in 2020 amid SEC lawsuit, spent $150M on defense

https://www.ccn.com/education/crypto/ripple-vs-sec-timeline-and-outcomes/

Ripple CEO Brad Garlinghouse recently disclosed at the University of Kansas Business School that Ripple Labs contemplated shutting down in 2020 after the U.S. Securities and Exchange Commission (SEC) initiated a lawsuit against the company. The shutdown plan involved distributing its XRP holdings to shareholders and dissolving the company. Despite the initial consideration, Ripple chose to confront the lawsuit, ultimately spending $150 million on legal defenses. The case concluded in August 2025 with Ripple paying a $125 million penalty but achieving a significant legal clarification that XRP is not considered a security when traded on secondary markets.

Key Takeaways

Market behavior suggests uncertainty around XRP’s future following the revelation of Ripple’s previous shutdown consideration.

Current market pricing implies a decreased likelihood of XRP reaching the $3.00 mark in July, with odds dropping from 3% to 2.2%.