Woofun AI reports that Ripple CEO Brad Garlinghouse revealed the company nearly ceased operations following the 2020 SEC lawsuit. Garlinghouse and co-founder Chris Larsen evaluated shutting down Ripple and distributing XRP holdings to shareholders as a viable exit strategy.

The executives ultimately decided to contest the regulatory action rather than dissolve the entity. This choice preserved hundreds of jobs but incurred approximately $150 million in legal expenses over four years. A federal judge subsequently ruled that XRP is not a security, leading to a settlement last year amid shifting SEC leadership attitudes toward digital assets.