Ripple sued for violating XRP securities laws
Bitcoin Manipulation Abatement LLC alleged in US federal court the sale of XRP for an unregistered value
The Ripple platform has been hit again by another lawsuit alleging violation of XPR securities laws. The accusation was made by Bitcoin Manipulation Abatement LLC who claimed that the crypto company misled investors and sold XRP as an unregistered security that interrupt the provisions of federal law.
According to official documents filed May 1st in court, the plaintiff accuses the cryptocurrency mining company and its chief executive officer (CEO) Brad Garlinghouse for raising more than $ 1 billion after the sale and marketing of XRP under the aforementioned name.
The official document details the following: “… in order to boost demand and thus increase profits from the sale of XRP, the defendants have made a litany of false and misleading statements about XRP in violation of California’s securities laws, and false advertising and unfair competition laws.”
XRP token attracts demands
Over a period of time, Ripple has had to face several legal actions, all of them linked to its XRP token, considering this last demand as one of the most valuable by capitalization in the market. The previous indictment brought in May 2018 by XRP investor attorneys Bradley Sostack has similar charges to the current one of investor cheating and violation of securities laws.
Sostack claims that his primary goal is the recognition of XRP as a value. However, an amendment tabled on March 25 suggested that he was hedging his bets that the court might not recognize him as such.
K.Villarroel
Source: cointelegraph
