An investor has filed a class action lawsuit against the fintech startup Ripple, alleging that the company violated state and federal securities laws. A lawsuit has been filed against Ripple Labs, its CEO, and subordinates by San Diego resident Ryan Coffey. The offended party alleges that the defendants have damaged the state and government securities laws, participating in plans to raise a huge number of dollars through the offer of unregistered ripple tokens (XRP).
Class Action Lawsuit
Coffey in his complaint said that,
“This is a securities class action on behalf of all investors who purchased Ripple tokens(“XRP”)issued and sold by Defendants. It arises out of a scheme by Defendants to raise hundreds of millions of dollars through the unregistered sale of XRP to retail investors in violation of the registration provisions of state and federal securities laws”
According to the lawsuit, Coffey purchased 650 XRP tokens for about $2.60 each, or $1,690, at the start of January and sold them a few weeks later at a loss of approximately $551, or about 32 percent of his initial investment. Coffey further said in his filing that 20 billion tokens were given to Ripple Labs’ founders and 80 billion to the company itself, he alleges that the defendants “earned massive profits by quietly selling off this XRP to the general public. Attorney James Taylor-Copeland representing Coffey filed the lawsuit with seeking damages on behalf of Coffey and all others who invested.
Coffey further described that
In order to increase demand for XRP, and thereby increase the profits it can derive by selling XRP, Ripple Labs has consistently portrayed XRP as a good investment, relayed optimistic price predictions, and conflated Ripple Labs’ enterprise customers with usage of XRP.
He gave example for this, in 2014, Ripple Labs publicly stated that “we will engage in distribution strategies that we expect will result in a stable or strengthening XRP exchange rate against other currencies.”Ripple Labs greatly increased these efforts to push XRP on the general public in 2017 and 2018
The cryptocurrency world is full of risks, volatility and dynamism. It is full of uncertainty that swings both ways. One of the most important questions right now is what will happen to Ripple?
Recommended posts
-
Ripple SEC Update: is Ripple winning the Lawsuit? -
LAST CHANCE to Buy XRP below 50 cents…Here’s Why! -
Ripple Price Prediction – How High will XRP reach in 2050?
-
Top 20 Biggest Crypto Lawsuits Globally: List -
Shiba Inu Price Prediction: How High can SHIB Price reach by 2030? -
Ripple Ties: MoneyGram Sued In Investor’s Class Action - XRP Prediction: Why XRP Price might EXPLODE in November 2022?
-
Conservative Cardano Prediction for 2023 – How high can Cardano go? -
Why is XRP Price up? SEC Lawsuit Resolution in sight?
- Ripple Lawsuit News: When will Ripple settle the SEC Lawsuit?
- Analysts are LOVING XRP Gains! Will XRP price reach 1$ soon?
-
“Ripple’s XRP A Scam”: Bitcoin Analyst amidst Lawsuit Row -
Coinbase Faces Class Action Lawsuit Over Insider Trading Accusations -
Crypto Millionaire: Buy THESE Cryptos before they BOOM in 2023?
- XRP relisted, Ripple CEO optimistic about the Lawsuit…BUY XRP in 2023?
-
Ripple community celebrates value surge
-
Shiba Inu to Reach 1$ soon? This New Upcoming Development Proves it Right - Canada-based Kik Interactive slapped with a $100 million lawsuit by The SEC
-
Ripple SEC Update – 2022 Updates on all the Ongoing Legal Case
You might also like
More from Crypto
Cardano or Polygon: Which Blockchain is BETTER?
When it comes to cryptos, which blockchain is better, Cardano or Polygon? In this article, we will provide an introduction …
Top 3 Altcoins to BUY in February 2023 – Best Crypto Investment!
The crypto market is moving higher! Based on current market trends and expert analysis, here are the top 3 altcoins …
What is Dollar Cost Averaging (DCA) as Explained to a 5-year-old
When markets are crashing, investors revert to DCA. Let's dig deeper into what is Dollar Cost Averaging (DCA) and explain …
