Another Lawsuit Filed Against Ripple

And again, Ripple is under lawsuit attack from its investor
05 July 2018   622

Another lawsuit was filed against the Ripple. The main plaintiff David Oconer demands to recognize the XRP cryptocurrency as a security. This is reported by CCN.

The claim was filed in California, and Ripple Labs, CEO of Brad Garlinghouse and its financial services division, XRP II LLC, were named as defendants.

According to the lawsuit, the way Ripple Labs manages and distributes its cryptocurrency testifies that XRP is a security. Consequently, by selling it, the company violates securities laws, Oconer says.

He also notes that Ripple Labs is promoting its cryptocurrency and using other mechanisms to increase its value.

The lawsuit says that last May the company announced that the distribution of 61.68 billion XRP owned by Ripple will be limited, and promised to transfer 55 billion XRP to the escrow account. Ripple's management, including its CEO, actively advertised this fact to raise the cost of XRP, the plaintiff wrote, adding that they managed to achieve what they wanted.

Ripple CEO Twitter
Ripple CEO Twitter

Ripple’s public commitment to limit the supply of XRP had its intended effect. In the weeks that followed, the price of XRP rapidly increased, from approximately $0.22 per token on December 7, 2017 to $3.38 per token on January 7, 2018.
 

Lawsuit against Ripple

Thus, this is the third lawsuit filed by Ripple and containing similar charges. Last month, Vladi Zakinov addressed the California court, which claims that XRP is a controlled Ripple security. According to him, Ripple should register XRP before proceeding to sales.

In May, another lawsuit was filed containing similar charges. Its compiler, Ryan Coffey, states that Ripple Labs and other respondents received huge profits from organizing an "never ending initial coin offering", and notes that their statements made investors believe in the future success of the cryptocurrency.

Ripple repeatedly denied the charges. "We absolutely are not a security. We don’t meet the standards for what a security is based on the history of court law, "said Ripple's head of the market strategy, Corey Johnson, in April.

Crypto Won't Replace Fiat, XRP CEO Says

But head of Ripple believes that cross-border payments are the sphere in which cryptocurrencies can be an ideal solution
05 September 2018   584

Ripple's CEO Brad Garlinghouse is convinced that the fiat currency will not lose relevance in the near future and called "senseless" the possible replacement of traditional currencies with digital assets. The future of crypto currency lies in cross-border transactions, Garlinghouse said in the Stanford Legal podcast. This is reported by CoinSpeaker.

I don’t think we’re going to be buying coffee at Starbucks with Bitcoin or XRP anytime soon. I think we’ve got to ask ourselves: What problem is that solving? You were talking about paying for the day spa bill and how you do that, but I think in some ways the friction – fiat currency, the US dollar in this case works pretty well, and so we need to make sure it’s better than that before we talk about it as a currency…
 

Brad Garlinghouse

CEO, Ripple

According to Garlinghouse, cryptocurrencies can be used in the st way in international payments and as a means of preserving value. This is especially true of crisis and weak economies, with a high level of inflation. He noted that the average annual inflation of the currencies of countries outside the G20 is about 6%.

There are economies where the fiat currency is at best a weak currency. And in those contexts, if I were a consumer experiencing hyperinflation – would you rather hold a cryptocurrency or your fiat currency? And in a lot of those cases, you’re seeing people take their dollars, or not dollars, pesos of various sorts, and saying, ‘I’d rather hold this because it’s a better asset to hold in terms of its potential appreciation and lack of inflation.
 

Brad Garlinghouse

CEO, Ripple

The head of Ripple stressed that cross-border payments are the sphere in which cryptocurrencies can be an ideal solution. He also noted the Ripple, which allows to conduct international transactions "almost in real time". This will help many companies save time and resources.

We had one of the largest banks in Australia, the CEO told me that 40% of all of their consumer wire transfers result in a customer service phone call. The frustrating thing for the bank is not only do they have to absorb the cost of taking a customer service phone call, they also deliver the news that they don’t know wait a couple more days it’ll probably be there.
 

Brad Garlinghouse

CEO, Ripple

Earlier, the Northern District Court of California rejected a class action lawsuit filed by investor Ryan Coffey against Ripple Labs Inc. on behalf of everyone who bought XRP tokens after January 1, 2013. The company was accused of illegally manipulating the price of XRP.