Ripple Names New CFO as Cryptocurrency Firm Faces SEC Lawsuit

25 May 2021

in XRP

Reading Time: 3 mins read

Ripple Labs Inc. hired a new finance chief as it navigates a legal battle with U.S. securities regulators over claims that the company violated investor protection laws when it sold XRP, a digital asset.

The San Francisco-based startup on Tuesday named Kristina Campbell as chief financial officer. Ms. Campbell previously served as CFO for about five years until March at PayNearMe, a Santa Clara, Calif.-based billing and payments firm. Before that, she held senior positions at Green Dot Corp., a bank known for issuing prepaid debit cards. Ron Will, who took over as CFO of Ripple in 2017, in February was named finance chief at Hinge Health, a San Francisco-based digital clinic for muscle and joint issues.

Ms. Campbell’s appointment comes as Ripple is being investigated by securities regulators. The Securities and Exchange Commission in December sued the company, its Chief Executive,

Brad Garlinghouse,

and its founder,

Chris Larsen,

for engaging in an unregistered securities offering by selling XRP beginning in 2013. The case is viewed as a test of the SEC’s approach to regulating cryptocurrencies.

Money-transfer firm

MoneyGram International Inc.

in March terminated its partnership with Ripple after the SEC filed its lawsuit. MoneyGram was using XRP and a platform for XRP transfers as an alternative source of foreign exchange. Under the agreement signed in 2019, Ripple, which is privately held, paid MoneyGram for using its platform to help the startup expand to new markets.

As Ripple’s CFO, Ms. Campbell will be responsible for setting the company’s financial strategy, according to a press release. Ripple in March agreed to acquire a 40% stake in Tranglo, a cross-border payments firm based in Kuala Lumpur, Malaysia, as it looks to expand its business in Asia.

“Ripple is uniquely positioned to improve global payments in ways that have yet to be defined and I’m excited to be a part of that solution,” Ms. Campbell said in the release. Ripple declined to make her available for an interview.

The company on Tuesday also named former U.S. Treasurer Rosa Gumataotao Rios to its board of directors. Ms. Rios was appointed by former President Obama and held the role for seven years until July 2016. The U.S. treasurer has oversight of the U.S. Mint, the bureau responsible for circulating coins, and serves as an adviser to the Treasury Secretary.

“We are extremely fortunate to have them on the team as we continue our rapid international growth and to champion for regulatory clarity in the U.S.,” Mr. Garlinghouse said in the release.

Write to Kristin Broughton at Kristin.Broughton@wsj.com