Ripple Is Sued Again Regarding Security Laws Violations

The Bitcoin Manipulation Abatement LLC has accused Ripple and its CEO, Brad Garlinghouse, of violating the security laws while selling and marketing the XRP token. We can see that Ripple is sued again in a series of lawsuits which are trying to uncover more details about the security laws behind the XRP coin.

Attorneys working for the company mentioned above are in the XRP news today for filing a lawsuit in a US federal district court that alleges Ripple misled investors and sold XRP as an unregistered security in violation of federal laws.

According to the official court documents filed on May 1, Ripple is sued again by the mysterious entity with little online presence. In the documents, the Chief Executive Officer (CEO) Brad Garlinghouse is sued of raising more than a billion dollars through the sale and marketing of XRP as an unregistered security.

“…in order to drive demand for and thereby increase profits from the sale of XRP, Defendants have made a litany of false and misleading statements regarding XRP in violation of California’s securities laws, and false advertising and unfair competition laws.”

Additionally, the Bitcoin Manipulation Abatement LLC seeks to “recover damages” as well as “obtain other relief” related to the alleged violations. The same firm also filed a $150 million lawsuit against the cryptocurrency derivatives exchange FTX in November 2019, which was dismissed one month later.

High profile members of the cryptocurrency community such as the Binance CEO Changpeng Zhao reacted and expressed their thoughts on the lawsuit claims. The famous “CZ” called the lawsuit “very far fetched.”

https://twitter.com/cz_binance/status/1190978274421178370?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1190978274421178370&ref_url=https%3A%2F%2Fwww.financemagnates.com%2Fcryptocurrency%2Fnews%2Fftx-on-150m-lawsuit-we-agree-with-binances-stance%2F

Now, we can see that Ripple is sued again and is facing a fair share of legal action. Whether this action is short lived or not, the XRP token is currently the third most valuable coin in the cryptonews.

So, a class-action lawsuit against it is not something that XRP investors want. Still, Ripple Labs has a team of attorneys defending it in court. Meanwhile, the market news and updates today show that the Ripple price is doing well and surged by almost 3% this morning, stabilizing at $0.2195 and nearing the $0.2200 levels which are crucial for the token at this point.