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by chrisco255 1078 days ago
This part I don't understand, aren't those institutions "accredited investors"?
2 comments

There are specific regulations that carve-out ways to sell unregistered securities to accredited investors. For example, Rule 504 and 506 under "Regulation D", but they have limits on the amount raised ($10mm for 504) or limits on solicitation, which perhaps Ripple did not adhere to? You also have to file a Form D to claim the exemption ahead of time, which perhaps they didn't do?
As usual, Matt Levine has a great article[1] on this topic.

[1] https://www.bloomberg.com/opinion/articles/2023-07-14/ripple...