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XRP Security Lawsuit Given Green Light By Judge

 
XRP Security Lawsuit Given Green Light By Judge
Breaking News / Ripple
  • The federal district court in the United States have decided to give the green light to a lawsuit claiming that XRP is an unregistered security from Ripple.
  • Court documents reveal that the Judge ruled to only partially grant the motion from the San Francisco-based company to dismiss the lawsuit against it.

The federal district court in the United States have decided to give the green light to a lawsuit claiming that XRP is an unregistered security from Ripple.

Filed on the 26th of February, the court documents reveal that Judge Phyllis Hamilton of the court in the Northern district of California ruled that only partially grant the motion from the San Francisco-based company to dismiss the lawsuit against it.

The lawsuit has been going on since August last year by an investor in XRP, Bradley Sostack. He claimed that the company has misled investors and sold the token as an unregistered security in violation of federal law.

The lawsuit is primarily on the look out for recognition of the token as a security and the awarding of damages to all investors. This is on top of all the legal actions going on throughout the lawsuit.

Claims of personal liability against the CEO of the San Francisco firm, Brad Garlinghouse were dismissed by the judge. There is another claim that said the company violated state law in California which was also ignored by the judge.

However, the court did not give Ripple the satisfaction as they claimed that even if XRP was a security, a lawsuit would’ve been dismissed since it was sold over three years ago.

Uncertain

It all begs the question as to whether the future of the XRP token is uncertain. The talks of XRP being a security are not unheard of…

It will be interesting to see how this plays out. For more news on this and other crypto updates, keep it with CryptoDaily!

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