XRP lost value on the day the rest of the market began a major recovery, when the SEC enforcer behind Ripple Labs‘ $1.3 billion demand announced its exit.
The price of XRP remained relatively stable on Thursday, January 14, even as the overall crypto market began a recovery that brought more than $150 billion back into global market capitalization.
Earlier this week, the U.S. Securities and Exchange Commission (SEC) announced the imminent departure of Marc P. Berger, interim director of the commission’s Compliance Division. The outgoing director was in office at the start of the SEC’s $1.3 billion lawsuit against Ripple Labs.
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Berger resigns at the end of the month after only five Bitcoin Era months in the post. Previously, he had led the New York Regional Office as director since 2017, before being appointed to the compliance division in August 2020.
The official announcement posted on the SEC website on January 12 states that the outgoing director oversaw enforcement actions against numerous companies and corporate entities related to a large number of financial crimes and misconduct.
These include Telegram Group Inc, which was ordered to return more than $1.2 billion to investors following what was deemed an illegal token sale. Berger was in office for the start of the recent saga of lawsuits against Ripple, where Ripple Labs‘ CEOs are accused of possessing an unregistered $1.3 billion stock offering. The case will continue in Berger’s absence, with a pretrial date set for February.
Berger also sued JP Morgan and Robinhood for market misconduct, as well as Deutsche Bank AG, Herbalife and Stryker Corp for violations of the Foreign Corrupt Practices Act.
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Following the 76% collapse of the XRP price throughout December 2020, the currency managed to recover 68% of its value, but the current currency valuation of $0.29 remains slightly below a recent high of $0.78 in November.
The price of the currency remained relatively stable on Thursday despite the general direction taken by the rest of the market. The current XRP price of $0.295150 is 1.3% lower than the 24-hour high and leaves XRP with a market capitalisation of $13 billion.
XRP/USD daily price chart. Source: CoinMarketCap.com
Following the 30% increase in Polkadot (DOT) on Thursday morning, which brought it to fifth place for market capitalisation, another increase of similar magnitude would move XRP from fourth place.
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The price of Bitcoin (BTC) returned above the $38,000 range during Thursday’s recovery rally, while Ether (ETH) gained 11.4% to return the coin price to the $1,170 range.