XRP ( XRP-USD ), the third largest cryptocurrency in the world, lost nearly a third of its value on Wednesday, when investors responded to official accusations from the United States Securities and Exchange Commission (SEC) alleging that the token is an unlicensed bond.
The SEC filed lawsuits on Tuesday against U.S. company Ripple, whose founders created XRP. Two Ripple executives also face charges.
The SEC alleged that Ripple and its executives sold unlicensed securities, violating the rights of investors in the lawsuit. The watchdog said the group had illegally raised $1.3bn (£968m) since 2013 by selling XRP tokens without SEC authorization.
Read the entire story at: finance.yahoo.com.