Ripple CEO Brad Garlinghouse revealed that the company contemplated shutting down after the U.S. Securities and Exchange Commission (SEC) launched a lawsuit in 2020. This drastic measure was considered due to the substantial pressure arising from legal costs and operational constraints, which amounted to approximately $150 million during the dispute.
In a recent interview on the KU Hustle podcast, Garlinghouse explained that management even evaluated the possibility of distributing the company’s XRP holdings to shareholders. However, after weighing the options, executives chose to keep Ripple operational as shutting down would have led to the loss of hundreds of jobs.
Financial and Operational Strain
The SEC accused Ripple of raising $1.3 billion through unregistered sales of XRP, targeting Garlinghouse and co-founder Chris Larsen as defendants. Ripple contended that XRP should be viewed as a separate digital asset, rather than a security, arguing against the SEC's characterization.
Despite the challenges, including a five-year stall on Ripple’s American operations due to the legal uncertainties, the company continued to navigate the situation. Garlinghouse admitted that while the easier route might have been to shut down, the long-term implications would have been detrimental to the firm and its employees.
In August 2025, Ripple and the SEC formally resolved their legal challenges by withdrawing their appeals, bringing an end to the contentious litigation. Garlinghouse noted that while the decision to persist was fraught with uncertainty at the time, it is now viewed more favorably.
This article is for informational purposes only and does not constitute financial advice.
