Ripple Execs Weighed Shutting Down Amid SEC Lawsuit

Ripple's leadership was given dire legal advice to shut down operations after the SEC lawsuit. Brad Garlinghouse and Chris Larsen considered dissolving the company overnight, distributing XRP to shareholders on a pro rata basis. This outcome would have been a 'bad' one, but an easier way out.

The SEC's aggressive enforcement actions have long been a topic of debate in the crypto community. Some commentators question whether Ripple was truly on the verge of collapse, while others see this as evidence of the SEC's intent to break the resolve of leadership by naming individuals personally.

David Schwartz pointed out that competing crypto projects may have played a role in the SEC's actions. He noted that the personal charges against Garlinghouse and Larsen were likely intended to force a rapid settlement, but stopped short of making any concrete claims.