Ripple Files Motion to Dismiss Lawsuit About Securities Violation
The situation of Ripple in court continues to be complicated. The company has recently decided to file a motion to dismiss against a lawsuit that claims that Ripple has violated the U. S. securities law with the sale of its XRP tokens.
Ripple’s attorneys have decided to attack the idea that the plaintiff Bradley Sostack does not actually have the standing to file a formal complaint against the company. This decision was taken because it was easier to follow this route than to address the claims that XRP tokens were actually securities, something that Ripple is failing to disprove in court in the last few years.
The reason to go after the plaintiff is that he failed to bring the case to the law within three years. The statute of repose explicit that there is a period of three years after the Initial Coin Offering (ICO) in which people can complain. If they don’t, they may not be allowed to do it anymore.
Critics have noted that any defense that XRP is not a security is absent from the debate. There is only one mention in the process, which affirms that the token is not a security because it has no investment contract. Therefore, purchasing it is not investing in Ripple, just buying a decentralized asset.
It is also affirmed that XRP is a “convertible virtual currency” and not a commodity, despite what the plaintiff is claiming. Now, the court will hear the motion to dismiss before moving the case forward.