The lawsuit against Ripple can decide the fate of XRP
According to the current class action lawsuit, the blockchain company is accused of cheating investors and selling them XRP in violation of US federal law
The legal battle that Ripple faces expands again after the recent class action lawsuit alleging that the free software project issued and sold the XRP currency as an unregistered value. For their part, the plaintiffs claim that they lost money and insist that they should be compensated by Ripple, its subsidiary XRPII LLC and the CEO of Ripple, Brad Garlinghouse.
Given this, Ripple’s defense insists that even if the currency were a guarantee, the plaintiffs did not present the case on time, within three years after their first offer because Ripple sold the currency to the public between 2013 and 2015.
In addition, the company’s lawyers claim that the case is not relevant. “The plaintiff’s claim is counterproductive: his own accusations about when XRP was first offered for sale and how XRP bought to demand the dismissal of his claims.”
Although a ruling by the United States District Court for the Northern District of California was expected on January 15, the hearing showed no indication that they could put an end to this legal process, which is worrying because it is expected that the demand results determine the fate of the cryptocurrency, but not in its fullness.
If the motion of dismissal of Ripple is finally accepted by the court, the company should not have problems with other private plaintiffs in the future, but if Ripple is rejected, it can attempt to establish agreements with the plaintiffs or continue the legal battle to prove that XRP is not a security but a merchandise.
K. Villarroel
Source: heaven32
