Categories: Ripple

Ripple Faces Another Lawsuit that Claims XRP is Security

Click here to view original web page at

The company and its CEO Brad Garlinghouse have been accused of fraud and securities law violation - for the third time this year.

A new lawsuit against Ripple and its top officer was filed in the Superior Court of California last week. David Oconer, the lead plaintiff under this latest US suit, insists that Ripple's digital coin XRP should be classified as security that was issued and distributed in violation of existing securities law.

Oconer, a private XRP investor alleges that the XRP cryptocurrency issued and distributed by Ripple Labs is conflated with the proprietary technology of the company, managed and distributed in a way that makes it similar to traditional security. Moreover, the plaintiff insists that Ripple Labs and its CEO Bradley Garlinghouse used limited distribution tactics to boost the token’s price and profit from that.

"XRP offered and sold by defendants had all the traditional landmarks of security, yet defendants failed to register them as such. The purchase of XRP constitutes an investment contract as XRP purchasers, including plaintiff, provided consideration (in the form of fiats such as US Dollars and other currencies) in exchange of XRP," the filing reads.

This is the third class action lawsuit against Ripple Labs that claims that the centralized nature of the coin and its mining-free distribution model have allowed the company to run its initial coin offering (ICO) for an unlimited time period. As a result, the company managed to raise close to $100 million by selling its own cryptocurrency solely in the last quarter of 2017.

Ripple and its top officers have consistently denied the accusations that XRP is a security. In April, Cory Johnson, Ripple's chief market strategist said that XRP has nothing to do with a security as it does not meet the standards for what a security is based on in the history of court law.

Meanwhile, the US Securities and Exchange Commission (SEC) has yet to define its position. In June, the head of SEC's Corporation Finance Division, William Hinman, explained that the regulator does not consider Ethereum a security, but Ripple's token was not mentioned, which left the coin dangling in the grey zone and created perfect conditions for new legal class actions.

If it turns out that XRP is a product of a never-ending illegal ICO, running under SEC's nose, all three lawsuits will be successful and will create an important precedent for the whole cryptocurrency industry.


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 the Fraud? JPMorgan Metals Desk Fixed Gold Prices for Years

Risk Disclaimer - By using this web site you agree to its terms and conditions. All materials, including but not… Read More

1 hour ago

Thai Crypto Scene Still Reeling From Top Exchange Bailout

Thailand’s vibrant digital asset scene was shaken earlier this month when its most popular exchange unexpectedly announced an imminent closure.… Read More

1 hour ago

A Blockchain-Enabled SIM Card? How This Could Change Our Mobile Experience As We Know It

Distributed, Decentralized, Disintermediating While still in its infancy with regards to proven capabilities and real-life adoption, blockchain technology remains one… Read More

1 hour ago

Blockchain privacy explained

Blockchain does not require user identification in the same way as other technologies. Unlike the Internet, where users are tracked… Read More

1 hour ago

Bitcoin mining hurts our climate

Transcript You can enable subtitles (captions) in the video playerBitcoins hold the potential to revolutionise our economy in so many… Read More

1 hour ago

Chocolate Not Drugs the Future of Bitcoin Commerce

- Tim Tams sold for BTC on Online Blockchain's new crypto marketplace site - LONDON, Sept. 17, 2019 /PRNewswire/ --… Read More

1 hour 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