Ripple considered shutting down before SEC lawsuit fight, CEO reveals

Ripple's chief executive Brad Garlinghouse has revealed that he and co-founder Chris Larsen previously evaluated winding down the company's operations, according to CoinDesk. The contemplated scenario would have involved transferring XRP holdings directly to shareholders before the firm ultimately opted to defend itself against regulatory action.

The disclosure suggests that Ripple's leadership faced a critical juncture as the company confronted legal pressure. Rather than pursue the dissolution strategy, Garlinghouse and Larsen elected to mount a legal defense against what would become a prolonged regulatory battle.

The company has been engaged in ongoing litigation with U.S. authorities over whether XRP qualifies as a security under federal law. This dispute has shaped Ripple's trajectory and strategy over multiple years, making the earlier consideration of an exit particularly noteworthy.

Garlinghouse's comments underscore the gravity of the situation the company faced and the consequential nature of the decision to continue operating and fighting the case rather than liquidating assets. The choice to proceed with legal defense instead of the alternative shutdown scenario has defined Ripple's path forward.

For additional details and context on Ripple's legal battles and strategic decisions, readers can review the full report at CoinDesk.

*Source: [CoinDesk](https://www.coindesk.com/markets/2026/07/12/ripple-once-weighed-shutting-down-and-handing-xrp-to-shareholders-ceo-says). Summary by Quantority.*