Investor Lawsuit Against Ripple Demands Explanation for Ongoing Public Sales without SEC Registration

    XRP cryptocurrency investor's class action lawsuit continues as the plaintiff claims the three year statute of repose does not hold due to the ongoing security sales Ripple makes out of its escrow stash.

    XRP the third-largest cryptocurrency by market cap has had quite a disastrous year in terms of trade market price action, where it failed to break past the psychological barrier of $0.30 even when the rest of the altcoins have made significant gains. Not only that XRP has often been accused of being security as its market circulation is centralized, in the class-action lawsuit filed against Ripped, but the firm has also been accused of violating several security laws that put investors at risk.

    In the ongoing XRP securities lawsuit Bradley Sostack, the lead plaintiff in the case has now double-down on his claims that, since XRP falls under Security it has broken the law by selling it's token without registering it with the Security and Exchange Department (SEC) of the United States.

    The lawsuit was filed by previous investors in the company who lost a significant amount of capital due to the depreciation of XRP tokens. The investors started a quest to prove that XRP was a security back in the summer of 2018.

    Ripple in response filed a motion to dismiss the case based on the three-year statute of repose that expired in 2016. But Sostack claimed that the statute of repose does not immune the firm from breaking security laws.

    Sostack was appointed as the plaintiff in the case by the court in the long-running court battle started in summer 2018. Sostack claimed that he lost $118,100 through his XRP investments. He claimed that the parent company cheated people by claiming that the price of the altcoin would spike and they would receive many folds the returns.

    Now Sostack has filed a new motion drawing the attention towards ongoing public sales of XRP which is in violation of the security law.

    Sostack told the court that the defendant relies on “out-of-circuit decision” which “cannot be squared with the Supreme Court’s more recent holding that the statue of repose ‘runs from the defendant’s last culpable act (the securities offering).'”

    He elaborated,

    “Defendants have failed to cite any case – and indeed, no court has found – that liability for multiple offerings have been barred by the statute of repose.”

    Ripple must respond to the new fillings by December 4th and the oral arguments in the court are expected to commence by January 15.

    SEC has banned the Telegram to offer its token to the public which was scheduled for late September as they failed to register their token sale with the SEC. Telegram raised over $1.4 billion through ICOs. Thus, whether XRP is a security or not will remain an arguable topic, but for now Ripple must explain how they were conducting public sales without the registration or license to offer.

    Get Free Email Updates!

    *Action* Enter Best Email to Get Trending Crypto News & Bitcoin Market Updates

    I will never give away, trade or sell your email address. You can unsubscribe at any time.

    Hank Klinger
    Hank Klinger
    Hank Klinger has been working online for seven years now. He has written for several national companies. Hank has been a part of our team for over three years, reviewing ICOs, new cryptocurrencies and helping us keep up to date with industry news. His primary knowledge is in marketing, sales, and advertising, and he uses that knowledge to research and pick out reliable sources of information to use as a basis for his writing.

    [Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

    [Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer


    1. Well note it not a security so they can do what they wish if some idiot brought OF A EXCHNAGE it has nothing to do with ripple


    Please enter your comment!
    Please enter your name here


    Live Bitcoin Price & Latest BTC Charts

    Today's Latest Crypto News

    General Motors (GM) Files Blockchain-Based Map Network Patent for Autonomous Vehicles

    General Motors (GM) plans to build a self-updating navigation system on blockchain to allow use across “specific roads” on autonomous vehicles. In a newly...

    BTC Proposes a Greater Value Than Gold; $670M Transferred For 26 Cents Within Its Network

    Bitcoin’s value proposition in fund transfers is so far one of the most cost-friendly avenues to send money globally. A recent transaction within its...

    COVID-19's Impact On The Economy Claims Another Business as Cambrial Capital to Shut Down

    Cambrial Capital which focuses on a Crypto fund of funds is set to shut down its operations in the near future according to insiders...

    Apple’s New Intelligent Prevention Tracking (ITP) on iOS Threatens Burner Wallets Existence

    Apple’s recent upgrade on the Safari WebKit might soon phase out the convenience of burner wallets within the cryptocurrency space for its users. ...

    Galaxy Digital's Mike Novogratz: This Is The Year For BTC Or I Might ‘Hang Up My Spurs'

    Bitcoin proponent, Mike Novogratz is still “most excited” about the world's leading cryptocurrency but “if it doesn't go all out by the end of...

    BitcoinExchangeGuide is a hyper-active daily crypto news portal with care in cultivating the cryptocurrency culture with community contributors who help rewrite the bold future of blockchain finance. Subscribe on Google News, see the mission, authors, editorial links policy, investment disclaimer, privacy policy. Got News? Contact us, we are human too. Note: nothing here is financial advice, do your own research thoroughly.