As per the filing, the company and it’s CEO (Brad Garlinghouse) has raised about billion dollars with the sale of XRP by marketing its native token as a security.
In May 2018, ripple faced a similar lawsuit with allegations of misleading investors and violating the securities law.
This year has been a rollercoaster ride for ripple with some major partnerships with banks and suing youtube against XRP giveaway Scam. It also recently released it’s Quarter Lawyers for a report for the year 2020, and reportedly witness the lowest sell of XRP. Yet Another major update for XRP holders. Bitcoin Manipulation Abatement LLC lawyers filed
a class-action lawsuit against Ripple with the U.S. Federal District Court. The plaintiffs have raised an allegation that the ripple misled its investors along with the sale of XRP tokens as unregistered securities.
In what is getting to be old hat, yet another lawsuit against Ripple and Mr. Garlinghouse saying that XRP is an unregistered security, created out of thin air, and serves no real purpose except to make a couple of people really rich. pic.twitter.com/4g79ZUA1oD
— Palley (@stephendpalley) May 4, 2020
As per the filing, the company (Ripple) and it’s CEO (Brad Garlinghouse) raised about billion dollars with the sale of XRP by marketing its native token as a security. They further in their fillings alleged that the company made false and misleading statements regarding XRP. So as to increase the demand and increase profits from the sale of XRP. The plaintiffs noted that the company violated the California Securities Law. And also breached the law through misleading advertisements and unfair competition.
Bitcoin Manipulation Abatement requires Ripple to “recover all losses”.
Not the First Lawsuit Against Ripple
This is not the first lawsuit against Ripple. In May 2018, ripple faced a similar lawsuit with allegations of misleading investors and violating the securities law.
The class lawsuit filed against ripple alleges company for selling unregistered securities. Investors claim to lost money after Ripple convinced them to invest in their cryptocurrency XRP. Investors then filed a case and demands for recovery of their loss and declaration of XRP as security.
Plaintiffs File a Slew of Cryptocurrency-Related Lawsuits
The Bitcoin Manipulation Abatement LLC also filed a $150 million lawsuit in November 2019 against the cryptocurrency derivatives exchange FTX, which was dismissed by the court a month later.
Only scanned through the parts that explicitly had the word Binance. Honestly, all seems very far fetched. We have resolved the issues long ago.
— CZ Binance ??? (@cz_binance) November 3, 2019
The lawsuit was against FTX for market manipulation and selling of securities in the United States. According to plaintiffs, FTX used accounts to manipulate Binance’s recently-launched Bitcoin futures in mid-September.
However the CEO of Binance believes this lawsuit and its findings are improbable. Further stating that these issues have already sorted between FTX and Binance.