Ripple Sued for Securities Law Violations
What's the story?
Taylor-Copeland Law announced a class-action lawsuit against Ripple Labs. XRP II, and Ripple's CEO Brad Garlinghouse. The complaint alleges Defendants have earned massive profits in violation of state and federal securities laws by selling XRP to the general public. The complaint further alleges that XRP has all the hallmarks of a security and that Ripple tries to obscure its sales of XRP by doing so on exchanges rather than directly.
Why Does This Matter?
More and more lawsuits in the cryptocurrency space. It would be much easier if the government defined what ICOs was legal and what wasn't. We would have a lot less of these grey area lawsuits, but then again lawyers thrive on grey areas. The lead plaintiff is suing because he lost $551.89 over 10 days. This sounds like a shakedown. XRP sounds like a security, but it seems like this is a case to enrich the lawyers, not to prevent XRP from defrauding future investors.
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