In what seems to be a controversial move, Ripple has filed a motion to dismiss a lawsuit over it reportedly selling unregistered securities.
In a court filing published today by Fortune, solicitors representing the firm against investor Bradley Sostack dismissed the claims against it.
In part of an ongoing legal battle, Sostack says Ripple’s sales of altcoin XRP in 2013 constituted an unlawful securities offering.
Despite Ripple denying this, the case has thrown up wider concerns over the legality of Ripple’s operations regarding XRP. In fact, executives have refused to recognise the firm’s relationship to the token, despite their huge personal holdings and sell-offs of it, which continue.
Before we go any though, it’s worth saying that we aren’t financial investors and this isn’t financial advice. Please do your own research before putting your money in a cryptocurrency and always remember to trade safe!
Now though, fresh suspicions are already swirling after lawyers’ motion to dismiss failed to address securities aspect of XRP at all.
One section read:
“Because of the multiple, independent grounds for dismissing this action, the Court need not resolve whether XRP is a security or currency for purposes of this Motion, which assumes Plaintiff’s allegation that XRP is a security.”
The well-known American lawyer, Jake Chervinsky came into the conversation who overlooked a realistic stance on the proceedings.
He tweeted the following this week:
“They make twelve separate arguments for dismissal of the plaintiff's claims. Not a single one squarely addresses whether XRP is an unregistered security.”
It will be interesting to see how this plays out with the price of XRP. For more news on this and other crypto updates, keep it with CryptoDaily!