Categories: Ripple

Disgruntled XRP Investor Hits Ripple with Class-Action Lawsuit

Click here to view original web page at

Join our community of 10 000 traders on for just $39 per month.

A disgruntled XRP investor has filed a class-action lawsuit against Ripple, alleging that the company violated US and state-level securities regulations by selling the token to the general public.

The lawsuit, which also names as a defendant Ripple CEO Brad Garlinghouse, argues that Ripple has essentially conducted a “never-ending ICO” that should be classified as an unregistered securities offering according to definitions used both by the US Securities Act and the California Corporations Code.

“Defendants have since earned massive profits by quietly selling off this XRP to the general public, in what is essentially a never-ending initial coin offering (“ICO”),” the suit claims. “In order to increase demand for XRP, and thereby increase the profits it can derive by selling XRP, Ripple Labs has consistently portrayed XRP as a good investment, relayed optimistic price predictions, and conflated Ripple Labs’ enterprise customers with usage of XRP.”

Ryan Coffey, the lead plaintiff in the case, claims that he purchased 650 XRP on Jan. 6, 2018, when the token was trading at $2.60. Less than two weeks later, on Jan. 18, he sold the entire stake for $1,105 in USDT (a USD-pegged token created by Tether), ultimately yielding a net loss of $551 — or 32 percent — due to price fluctuations between USD and USDT.

However, the case was brought on behalf of all XRP investors who purchased tokens after Jan. 1, 2013.

The case was filed by Taylor-Copeland law, a California-based law firm that specializes in blockchain and cryptocurrency-related cases.

As CCN reported, the Securities and Exchange Commission (SEC) has opened probes into dozens of ICOs to determine whether they constitute unregistered securities offerings, and US regulators have scheduled a meeting next Monday to discuss whether particular cryptocurrencies should be lumped into this category as well.

Former Commodity Futures Trading Commission Chairman Gary Gensler recently said that he would classify XRP as a “noncompliant security” due to its centralized distribution model.

However, Ripple executives have long maintained that XRP is exempt from this classification, and the company further says that it has not yet been served with the lawsuit.

“We’ve seen the lawyer’s tweet about a recently filed lawsuit but have not been served. Like any civil proceeding, we’ll assess the merit or lack of merit to the allegations at the appropriate time,” Tom Channick, Ripple’s Head of Communications, told CCN in a statement. “Whether or not XRP is a security is for the SEC to decide. We continue to believe XRP should not be classified as a security.”

At present, XRP is valued at $0.90, which provides it with a circulating market cap of $35.4 billion and makes it the world’s third-largest cryptocurrency.

Featured Image from Shutterstock.

Follow us on Telegram.


A disgruntled XRP investor has filed a class-action lawsuit against Ripple, alleging that the […]


Illuminati, Mason, Anonymous I'll never tell. I can tell you this, global power is shifting and those who have the new intelligence are working to acquire this new force. You matter naught except to yourself, therefore prepare for the least expected and make your place in the new world order.

Disqus Comments Loading...
Published by

Recent Posts

Bitcoin Is Up Against An Extremely Important And Powerful Resistance Zone On The Monthly Chart: The Kijun-Sen (Base Line)

We can identify the price action causes of why price is finding it difficult to move higher by analyzing longer… Read More

5 hours ago

BTC ATM goes missing and no one notices

When you think of thieves stealing an ATM, the mind jumps to the idea of an exciting crime. Maybe there’s… Read More

5 hours ago

Major Swedish Bank Orders Negative Interest Rate on Euro Deposits

Sub-zero interest rates have become the norm in some countries, especially in Europe. Nordic nations such as Sweden and Denmark… Read More

5 hours ago

Researchers Concur Current Bitcoin Market Cycle is Only Just Beginning

Bitcoin price cycles can be influenced by a number of factors, FOMO and public sentiment is one, and mining profitability… Read More

5 hours ago

Hopes for Bitcoin as China’s Renminbi Drops to 11-Year Low

A recent plunge in the bitcoin price is looking to negate some of its losses as China’s currency weakens to… Read More

5 hours ago

Why Bitcoin Rules in the ‘Insane’ World of Negative Interest Rates

Central banks around the world are on a negative rate binge to further a compelling case for bitcoin.. | Source:… Read More

5 hours ago

This website uses cookies. We use these cookies to collect data about your interaction with our website for the purpose of continuously improving your experience with our site. For more information we encourage you to read our privacy policy.

Read More