1. In 2015, the IRS and Department of Justice conducted a criminal investigation into Ripple, Ripple Labs, and its subsidiaries. justice.gov/opa/pr/ripple-…
The investigative summary identifies nearly 15 violations by Ripple & its subsidiaries that are listed in the DOJ Criminal Investigation report, and yet there is no mention of the illegal sale of securities.
The report does, however, identify Ripple’s failure to comply with the Bank Secrecy Act in a variety of AML&KYC processes. This is important, because the Bank Secrecy Act breaks down the word “financial institutions” to clearly distinguish between banks,
money services businesses, and Brokers or dealers in securities. Remember in my earlier thread about how the DOJ & FinCEN reports specifically refers to Ripple as a money services business? Stay with me here..
So, we have @Ripple in a Criminal Investigation led by the IRS, that settles for AML/KYC remediations to satisfy the needs of a money services business.
If Ripple were illegally selling securities, the Criminal Report could not, under US Treasury law, refer to Ripple as a money services business. Remember - The Bank Secrecy Act, which was the topic of evaluation in this investigation, clearly distinguishes between between
money services businesses, and Brokers or dealers in securities. And yet, an investigation, led by the IRS, into Ripple's selling of xrp from 2013-2015 and thereafter, identified no finding for the illegal sale of securities.
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