Prominent Crypto Lawyer Says Ripple’s Security Case Against XRP Could Take Much More Legal Time
Security Case Against Ripple Might Take Quite A While
The much anticipated judgment being expected by the entire cryptocurrency community is the judgment about whether or not Ripple (XRP) should be regarded as a security.
However, recent events make it seem that the case might not be concluded anytime soon.
According to Jake Chervinsky, a lawyer who has been very keen on the case, the reason for the delay is that the next case management conference for the Ripple case has been canceled by Judge Hamilton, the hitherto presiding judge.
A tweet posted by Mr Chervinsky read:
“Today, Judge Hamilton heard oral argument on the plaintiffs' motions to remand & decided to cancel next week's case management conference. This implies her decision will take a while … or the case is going back to state court.”
Possible Reasons Why The Conference May Have Been Canceled
According to Chervinsky, Judge Hamilton may have canceled the hearing for quite a few reasons. Taking to Twitter again, Jake thinks she may have needed more time to properly think things through or, as earlier stated, she might plan to take the case back to state court.
Regardless, he doesn’t think any pronouncement would be made before February’s end.
The tweet read:
“It also could mean nothing at all. Maybe Judge Hamilton decided to handle the case management conference today so the parties wouldn't have to show up again next week. Or maybe she's going out of town.”
I'm watching for a quick decision though, maybe by the end of
The Case Against Ripple
For a while now, there has been a debate about whether or not Ripple is a proper security because of its centralization issues. At the moment, the company is embroiled in a litigation which blends about three different cases, all in California. The cases include two state-based ones in San Mateo County with Zakinov & Oconer as the litigants and one federal suit by Greenwald in California’s Northern District.
Originally, there were four security class action cases against Ripple all claiming that the company ran afoul of certain federal & state laws because it went ahead to offer, sell and even promote itself and service to investors without first registering.
The following is an extract from the class action case brought by Zakinov:
“XRP, despite its name as a ‘token,’ is actually security under California law. In particular: (i) Ripple uses the funds it raised from the sale of XRP to fund its business ventures; (ii) the Company indiscriminately offers XRP for sale to the public at large; (iii) plaintiff and the Class (as defined herein) are effectively powerless to control the success of Ripple and XRP; and (iv) plaintiff and the Class members’ investment is substantially at risk and is without any security.”
However, one of the four cases brought by Ryan Coffey was willingly let go by the litigant still leaving Ripple with three cases. This happened after the lawyers for Ripple Labs applied to have combined class-action suit moved from the San Mateo Court to the United States District Court of the Nothern District of California.
The entire crypto community is now impatiently waiting on Judge Hamilton to make a move regarding the case.