Another Lawsuit Filed Against Ripple

And again, Ripple is under lawsuit attack from its investor
05 July 2018   1703

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.

Ripple to Write Open Letter to US Congress

Ripple's execs asked congress to support the development of the technology
29 July 2019   304

Brad Garlinghouse, head of California-based Fintech startup Ripple, and co-founder Chris Larsen, wrote an open letter to the US Congress on the eve of relevant hearings at the Senate Banking Committee. They asked lawmakers to decide on regulation, but at the same time not painting them with a broad brush.

So, Garlinghouse and Larsen are convinced that cryptocurrencies will complement fiat currencies, and not put their existence at risk, and the United States, in their opinion, should lead the development of the industry.

According to them, without proper regulation, there are risks for innovation, tax revenues and jobs in the blockchain industry.

We urge you to support regulation that does not disadvantage U.S. companies using these technologies to innovate responsibly, and classifies digital currencies in a way that recognizes their fundamental differences—not painting them with a broad brush.
 

Brad Garlinghouse, CEO of Ripple &
Chris Larsen, Executive Chairman and Co-founder of Ripple

Earlier, Garlinghouse agreed with US Treasury Secretary Stephen Mnuchin that cryptocurrency could not replace Fiat.

Probably, the head of Ripple fears that lawmakers will not understand the differences between cryptocurrency and Libra digital currency, and will introduce the same regulation for them.

Despite the fact that Ripple was able to significantly increase its customer base after the Facebook initiative was announced, Garlinghaus had already expressed fears that excessive attention to Libra could harm the industry as a whole.

On Tuesday, July 30, the US Senate will hold hearings on the regulation of cryptocurrency, during which the CEO of Circle company Jeremy Allair, a member of the Congressional research service Rebecca Nelson and a law professor at the University of California Mehra Baradaran will speak.