William Hinman stated that he had warned Ripple that their asset was a security at the time when he was in the position of the Director of the Division of Corporation Finance of the US Securities and Exchange Commission (SEC).
William Hinman, former director of the US Securities and Exchange Commission’s division of corporate finance, claims that while still holding his previous office he had alerted Ripple that XRP was a security. According to Hinman, XRP still being on offer violates securities legislation.
During his deposition in the Ripple lawsuit against the US Securities and Exchange Commission, the former SEC official claimed that he had warned the San Francisco-based company that it had to halt the sales in order to come into compliance:
“Frankly, the one I recall the most clearly is probably the one when XRP came in with a person who had my position before me, as well as enforcement counsel. They were interested in is there a way to restructure what we’re doing to bring it within compliance of the securities laws, and the first thing I said to them was you’re continuing to offer XRP without any kind of restrictions that would apply as a securities offering. If you want to come into compliance you have to stop doing that, and they understood that.”
Hinman’s deposition, which has been partly leaked now, took place on 27th July after the court made an unorthodox decision to authorise it due to huge public interest in the case.
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