Michael Arrington’s Crypto Hedge Fund Subpoenaed By SEC Againbr>
Arrington XRP Capital, a cryptocurrency hedge fund denominated in Ripple’s XRP, is planning to move out of the US and relocate to Asia after receiving two subpoenas from the US Securities and Exchange Commission (SEC).
In November 2017, Michael Arrington, the founder and former editor-in-chief of TechCrunch, created Arrington XRP Capital and denominated the fund in cryptocurrency rather than fiat to make it easier for crypto holders and foreign investors to participate in the fund.
In March, Arrington XRP Capital, along with other cryptocurrency hedge funds, received subpoenas from the SEC. At the time, the TechCrunch founder said that he received a subpoena as private person and that it was about the organization he had invested in previously. Arrington also called the shotgun action by the SEC a shame – as initial coin offerings (ICO) will just vote with their feet and move offshore thus depriving the US of highly desirable crypto innovation.
Last week, Arrington said in a Twitter post that they received a second subpeona from the SEC, again collecting information from them as investors in a US company. Arrington added that he will wait until rules regarding ICOs in the US have been officially clarified before they get involved in US projects again.
“The legal costs of dealing with these are not insignificant,” Arrington said. “We will not invest in any further US deals until the SEC clarifies token rules. Pivot to Asia.”
In a follow-up tweet, he said “the US has already been left behind,” and that they are planning to move to a region with more lax regulations, such as Lichtenstein.
In a recent interview, Arrington said that none of the good ICO projects wanted US investors due to the SEC’s confusing crypto regulation.
“What I’d really like to see is no regulation,” Arrington said. “But if we’re gonna have regulation we need to have it right and the SEC needs to make their move, they’re moving super slow. What I’d rather do is make rules, they can change them over time, at least so we know what the rules are. That’s my biggest concern.”