Ripple slapped with another lawsuit regarding XRP security violations

• A lawsuit has been filed claiming that Ripple has misled investors and sold its XRP token as a non-registered security in violation of federal law.
• Court documents accuse Brad Garlinghouse of raising more than $1 billion through the sale and marketing of the XRP token.

A lawsuit has been filed in the United States Federal district court by Bitcoin Manipulation Abatement LLC claiming that the San Francisco-based blockchain company Ripple had misled investors and sold its XRP token as a non-registered security in violation of federal law. 

Court documents were filed at the end of last week on the 1st of May that accuse the chief executive officer Brad Garlinghouse and the company as a whole of raising more than $1 billion through the sale and marketing of the XRP token as it is 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.”

The company has little online presence but looks to recover damages and obtain other releases in relation to the claims. 

Bitcoin Manipulation Abatement LLC has also filed a $150 million lawsuit against the crypto derivatives exchange FTX in November last year. This court lawsuit was dismissed just a month later.

It’s safe to say that 2020 is not a ripples year. Currently, in another legal battle with the popular streaming service YouTube, this is just another knife in the back for ripple.

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