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Brad Garlinghouse accused of touting XRP tokens behind the scenes in court

Brad Garlinghouse accused of touting XRP tokens behind the scenes in court
  • In a class-action lawsuit originally filed in May 2018, a new movement is underway. 
  • The lawsuit is centred around allegations that ripple (the San Francisco-based blockchain company) has violated the securities act through a 2013 initial coin offerings of the XRP token.

In a class-action lawsuit originally filed in May 2018, a new movement is underway. The lawsuit is centred around allegations that ripple (the San Francisco-based blockchain company) has violated the securities act through a 2013 initial coin offerings of the XRP token.

Earlier this week on the 25th of March, an updated complaint accused the company of touting the token to prospective investors as they liquidated their holdings behind the scenes. The accusations are directed at the CEO of ripple, Brad Garlinghouse.

The amended complaint makes it clear that the CEO has represented himself as extremely long on the HODL side in regards to the token in 2017.

Despite the posts online, the plaintiff’s have made the allegation that Garlinghouse sold just shy of 70 million XRP tokens, adding that he was liquidating all the tokens that he received from Ripple within days of receipt.

The suit also claims the following:

“The value of XRP owned by Defendants substantially exceeds the value of Ripple’s revenue or cashflow from all other sources. Ripple’s dominant value proposition are the XRP tokens it owns and sells. Ripple’s value proposition as a company depends upon the promotion of XRP, yet XRP is entirely or essentially pre-functional and purchased by investors in anticipation of profit based on the efforts of Ripple.”

For more news on this, the XRP Price and other crypto updates, keep it with CryptoDaily!

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