Categories: Ripple

Second Lawsuit Says XRP Is A Security Controlled By Ripple

Click here to view original web page at www.pymnts.com

Distributed ledger startup Ripple is facing another lawsuit over its XRP cryptocurrency.

According to CoinDesk, court records show that Vladi Zakinov filed a class-action lawsuit last week, naming Ripple Labs, XRP II (the company’s licensed money services business), CEO Brad Garlinghouse and 25 anonymous persons as defendants. The complaint was submitted to the Superior Court of California in San Mateo county.

Zakinov alleges that the XRP token is a security controlled by Ripple, and that he purchased XRP in January 2018 and “was damaged thereby.”

“XRP, despite its name as a ‘token,’ is actually a security under California law,” states the lawsuit. “In particular: (i) Ripple uses the funds it raised from the sale of XRP to fund its business ventures; (ii) the Company indiscriminately offers XRP for sale to the public at large; (iii) plaintiff and the Class (as defined herein) are effectively powerless to control the success of Ripple and XRP; and (iv) plaintiff and the Class members’ investment is substantially at risk and is without nay security.”

The filing added that Ripple and the other named defendants “were required to register XRP when offering or selling it,” but never did. In addition, the defendants “made a series of improper statements, which drove up the price of XRP.” While that helped Ripple receive greater returns from selling the token, investors lost money and could lose more.

A spokesperson for Ripple denied the lawsuit’s claims.

“This is just another example of an extortionist bringing forth an opportunistic suit that lacks merit. We feel confident that the claims regarding XRP are completely unfounded both in law and fact,” the representative said.

Earlier this month, it was revealed that two former U.S. Securities and Exchange Commission (SEC) officials are representing Ripple in another civil suit over whether XRP is a security. Mary Jo White, who had served as chairwoman, and Andrew Ceresney are representing the crypto firm in a suit filed by an investor per court records.

……………………………..

You Might Also Like:

Related Items: cryptocurrency, Lawsuit, legal, News, Ripple, What's Hot, XRP

According to CoinDesk , court records show that Vladi Zakinov filed a class-action lawsuit last week, naming Ripple […]

cinerama

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...
Share
Published by
cinerama

Recent Posts

Bitcoin’s Bulls Now Have a Target of $13.2K, Monthly Chart Suggests

View Bitcoin charted an "inside bar" pattern last month, making $13,200 the level to beat for the bulls. A convincing… Read More

6 hours ago

Japan to Solarize Its Burgeoning Digital Economy, Expert Take

Society is now witnessing the implementation of digital currencies, artificial intelligence (AI) and blockchain technology worldwide. These new digital technologies… Read More

6 hours ago

Mass Media’s Phony Freakout Over Bernie’s WaPo Criticism Is Backfiring

Authored by Caitlin Johnstone, After days of ridiculous, hysterical garment rending by mass media talking heads in response to Senator… Read More

12 hours ago

Quadriga CX Dukes It Out with “Failing” Auditing Firms

Quadriga CX , the crypto exchange in Canada that lost all access to customers’ funds when its founder passed away… Read More

12 hours ago

The Bearish Trends That Continue to Strike Bitcoin

At press time, bitcoin – the granddaddy of all crypto – is once again down for the count. Bitcoin Is,… Read More

12 hours ago

Will Growing Interest from China Propel Bitcoin’s Price Higher?

Bitcoin (BTC) has incurred a significant amount of volatility as of late which was perpetuated yesterday by news regarding the… Read More

12 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