Ripple is facing another lawsuit over securities law violation
Ripple Labs, the technology company behind the cryptocurrency XRP, has faced another class action lawsuit filed on behalf of Florida residents led by Tyler Tommy.
According to the lawsuit, the plaintiffs accuse Ripple of violating Florida Securities Law and are seeking investor protection by offering XRP to retail and individual investors without imposing any restrictions.
The lawsuit stated an explicit accusation by Ripple that, due to its inability to bear its business expenses, this forced it to sell the XRP digital currency as widely as possible while controlling supply and liquidity.
And from what came in the text of the lawsuit:
The vast majority of Ripple's revenue came from XRP sales (more than $ 1 billion), and Ripple has relied on these sales to fund its operations.
The lawsuit also identifies Ripple CEO Brad Garlinghouse as an individual defendant, and the lawsuit asserts that he sold $ 150 million worth of XRP from April 2017 through December 2019 while manipulating the XRP digital currency, and as a quote from the lawsuit in this regard:
At various times between April 2017 and December 2019 at least, Garlinghouse suspended sales of XRP temporarily because the market price of XRP was declining, in an effort to avoid a drop in the market price of XRP.
Garlinghouse has made a fortune from its ongoing sales of XRP digital currency despite saying that it will not sell XRP coins on CNBC.
As previously expected that the market value of Ripple will reach "trillions of dollars" in the "Bloomberg" interview, where the lawsuit indicated that in the text:
Garlinghouse himself has been a particularly steadfast spokesperson for Ripple's efforts to market XRP as an investment that investors can capitalize on.While he was selling millions of XRP.Garlinghouse has repeatedly told investors that he has invested in XRP, and that he has been optimistic about investing in it.
Legal problems accumulate on Ripple:
Ripple has been subjected to a similar class action lawsuit filed by lead plaintiff “Bradley Sostak” in May 2018.
The case lasted for nearly three years.
The legal troubles facing Ripple have become much worse, especially after the US Securities and Exchange Commission filed a lawsuit against Ripple last December.
In the Arab Bitcoin, we have previously touched upon a lawsuit led by the investment company "Tetragon", which is seeking to recover its shares and hold in Ripple after leading the C Series financing round in December 2019.
Some of these lawsuits appear to have taken advantage of the legal troubles and lawsuit that Ripple faces before the SEC.