In December, the Securities and Exchange Commission (SEC) filed a lawsuit against cryptocurrency company Ripple. The lawsuit resulted in massive losses to Ripple and the company’s digital token XRP plunged from $0.64 per token to $0.22 in January.
The SEC alleged Ripple’s board of executives of selling unlicensed XRP. Accordingly, cryptocurrency exchanges restricted trading in XRP — forcing the CEO of Ripple Brad Garlinghouse to consider relocating his business to Japan.
Nevertheless, Ripple has been seeking the help of former SEC chair Mary Jo White to defend themselves. White had headed the SEC for 4 years and is currently working as Ripple’s attorney.
In an interview with Fortune, White accused the Securities and Exchange Commission of being “dead wrong” about Ripple. She added that the SEC made a blender after alleging the cryptocurrency company of selling unlicensed securities.
“There’s no way to sugarcoat it. They’re dead wrong legally and factually,” White said.
According to White, the timing of the lawsuit is alarming. The SEC file coincided with the agency’s former chair Jay Clayton’s departure. White Argued that the SEC had spent years investigating Ripple and that figuring out a case after this long time is telling.