Ripple Hit with Another Lawsuit Alleging XRP Security Laws Violations
Another legal claim has been recorded against crypto goliath Ripple and its CEO Brad Garlinghouse asserting protections laws infringement with respect to the deal and showcasing of XRP.
The lawsuit alleges that Ripple created the XRP cryptocurrency for the sole purpose of making its founders and a few other people rich.
The suit, filed on Friday in the Northern California District Court, claims that XRP, the third largest cryptocurrency by market cap, according to data collected by Nomics, was marketed to the public to raise more than $1 billion.
In order to drive demand, Ripple made “a litany of false and misleading statements regarding XRP,” the suit alleges.
The same firm also filed a $150M lawsuit against crypto derivatives exchange FTX in November 2019 which was subsequently dismissed one month later.
Ripple faces multiple class-action lawsuits from investors in California who are claiming damages over the company’s alleged failure to register XRP as a security with the SEC and provide the public with the appropriate company documents and disclosures.
This new lawsuit echoes many of the same claims made in previous lawsuits against Ripple.