As the US Securities and Exchange Commission filed a lawsuit against Ripple and its two executives, more and more cryptocurrency companies are suspending their services with XRP. B2C2, a major crypto market-maker, became the latest to halt XRP trading with its US counterparties.
According to a report by The Block, B2C2 USA, which was formed last year, halted its trading with the digital token of the legally troubled company last Thursday.
The US unit of the market-maker took the harsh step after warning its clients about “further actions regarding trading in XRP products” in a memo circulated last week.
It is to be noted that the non-US clients of B2C2 can still trade XRP but after pre-funding all short positions.
B2C2 was fully acquired by Japan’s SBI Holdings earlier this month. The Japanese conglomerate already had a minority stake in the UK-based crypto company after a $30 million investment in July.
This recent acquisition makes the parting of B2C2 from XRP odd, given SBI’s long relation with Ripple.
SBI is one of Ripple’s leading investors, and the two parties also run a joint venture in Japan. The conglomerate even distributed XRP to shareholders as stock benefits.
Cutting Ties with Ripple
The delisting of XRP started even before the official confirmation of SEC about the lawsuit against Ripple as CrossTower decided to drop the token hours after a warning by Ripple CEO. OSL and Beaxy were among the first to delist XRP after the lawsuit confirmation.
Though major exchanges like Coinbase and Binance are still allowing XRP trading, many significant market players are distancing themselves from Ripple. Chicago-based Jump Trading and Mike Novogratz’s Galaxy Digital stopped making markets for XRP.
Furthermore, European crypto exchange, Bitstamp suspended XRP trading, but only for US-based clients. Simplex, a popular crypto payment processor, started to block XRP transactions for its clients, and Bitwise liquidated all its XRP positions.
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