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Ripple’s XRP II in fresh controversy after NYDFS denies FOIL requesting affiliate sales, discount policies

Febin Jose

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Ripple’s XRP II in fresh controversy after NYDFS denies FOIL requesting affiliate sales, discount policies
Source: Pixabay

Ripple has been consistently expanding its horizon in the cross-border remittance field. Its cryptocurrency, XRP, also registered an extended slump in a rather bullish market, over much of the past few months. XRP failed to post substantial gains until recently, even as Bitcoin breached multiple resistances. On May 14, following news related to Bitcoin’s surge over $8,000 and Coinbase enabling XRP trading for its New York users, the coin saw a double-digit resurgence.

Just when it seemed like XRP was finally on its way out of a bearish pullback, fresh trouble surfaced. In a Twitter thread, Ryan Selkis, Founder of Messari Crypto, stated that his FOIL request with the NYDFS regarding Ripple’s XRP II affiliate sales and discounts was denied, hinting at foul play on the part of Ripple and its subsidiary.

XRP II, LL is a subsidiary of parent company, Ripple, and is registered as a licensed money service business, mostly to institutional investors. In his FOIL request, a formal submission requesting information from New York state on the basis of New York’s Freedom of Information Law [FOIL], Selkis had requested for information on three aspects of XRP II.

The first question was regarding the “average sales price that XRP II has offered its enterprise customers from 2016 to 2019,” while the second and third questions were dealt with the implied discount to spot rate and the total XRP sold via XRP II, respectively. Though Selkis filed the FOIL request on January 29, 2019, it was only on May 13 that he received a reply, which is approximately three-and-a-half months after the filing date.

According to the reply he received, the reason stated for denial of the FOIL was that disclosure of such sensitive information would cause “substantial competitive injury to the subject enterprise.” Commenting on the reason given by the financial body for denying his request, Selkis stated in an apparent sarcastic tone that “disclosing the discounts Ripple and its affiliate were negotiating with its heavily marketed commercial partners was off-limits.”

He further accused NYDFS of deeming “public benefit” inconsequential and alleged that NYDFS did not believe that public XRP investors had the right to know the discounts to spot that its affiliates receive and the implied dilution rate.



Furthermore, he equated the denial of his FOIL request to “regulatory capture.” He said,

“If a regulated entity can get away with this sort of material obfuscation, imagine what the status quo is today in crypto.”

Though it is unlikely that this news would affect the larger public sentiment, many Twitter users encouraged Selkis to get to the bottom of this and expose any illegal doing. Twitter user, @TheGloballer, commented,

“I love the truth-seeking for shady crypto practices.  Keep up the pursuit. Especially XRP.”





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Febin Jose is a full-time journalist/editor at AMBCrypto. He believes that cryptocurrencies will navigate a volatile future and that Arsenal can still win a title. Lives around the "if it sounds like writing, I rewrite it" mantra.

Altcoins

Ripple CTO dismisses Coin Metrics report saying it was a ‘timeline issue’, Tron [TRX] futures to soon start trading on OKEx platform and more

Febin Jose

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Ripple CTO dismisses Coin Metrics report saying it was a ‘timeline issue’, Tron [TRX] futures to soon start trading on OKEx platform and more

Daily Crypto News – May 18

1) XRP-backed stablecoin: Kava Labs is developing a stablecoin, USDX, backed by XRP on a Cosmos Zone, which dynamically maintains stability to USD with decentralized mechanisms.

Read more at https://bit.ly/2HE7xAv

2) BitMEX insurance funds: While some panicked when Bitcoin crashed suddenly, others remained calm and assessed the situation. It was noticed that there was a huge sell order on Bitstamp, which pushed the price of Bitcoin by ~20% in a few minutes.

Read more at https://bit.ly/2VNgUaK

3) USDC do not exceed balance of US dollars: News revolving around the USD Coin [USDC] had taken a negative connotation when Coinbase CEO Brian Armstrong was called out for shilling the cryptocurrency. As a way to put any fears or speculations to bed, Grant Thornton LLP, an independent accounting firm released the latest attestation report on US dollar reserves backing USDC.

Read more at https://bit.ly/2Ej5dxM

4) SatoshiPay launches Solar Wallet: SatoshiPay has been working closely and designing micro-payment apps for the Stellar Network. Earlier this year, the micro-payment solution company launched ‘Solar wallet’, a stellar network-based and user-friendly desktop wallet. The Solar Wallet has proved to be user-friendly and easy-to-use and can securely manage funds.

Read more at https://bit.ly/2HrJ6HH

5) Blockstream CSO on Bitcoin: Samson Mow, Blockstream’s Chief Strategy Officer appeared in the latest Keiser Report discussion featuring Max Keiser. Talking about the satellite, Mow said that the purpose of Blockstream satellite was to provide redundancy for the Bitcoin [BTC] network.

Read more at https://bit.ly/2VvuQkY

6) HitBTC is insolvent, claim customers: According to a series of tweets by CryptoMedication, from Zerononcense, cryptocurrency analytics and research firm, the exchange is “insolvent”. The Twitter handler exclaimed his surprise that the exchange was “still in operation” as they had only 350,000 BTCs after their liquidation.

Read more at https://bit.ly/2JtlOTK



7) Weiss Ratings on Bitcoin’s price movement: Weiss Ratings, the crypto-specific rankings company, which, at times has rubbed the cryptocurrency industry the wrong way on predictions, suggested an absence of “manipulation” and termed the fiasco as a “normal market correction”.

Read more at https://bit.ly/2JrYtlE





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