Court to Refuse to Return XRP Case to the Lower Instance

The case by XRP investor alleged that Ripple used dishonest and illegal tactics to control the price of XRP
13 August 2018   265

The Court of the Northern District of California rejected the claim to return the lawsuit against Ripple Labs to a lower court initially formed by investor Ryan Coffey in the San Francisco court on May 3, 2018. Coffey wanted the trial to continue in lower courts in California and not be carried out by federal courts, Bitcoinist reports.

With his suit, Coffey claims to recover the losses he incurred as a result of investing in XRP. He claims that Ripple is manipulating the XRP course with unreasonable statements about the future price of the crypto currency, while violating California Corporate Law and "hiding the role of the security."

He also accuses Ripple CEO Bred Garlinghouse of misleading investors with statements aimed at promoting and enhancing the market rate of XRP. The plaintiff believes that XRP is not a fully decentralized crypto currency, which leads to the conclusion that Ripple may violate securities laws by distributing it.

Having read the papers filed by the parties and carefully considered their arguments and the relevant legal authority, and good cause appearing, the court hereby DENIES plaintiff’s motion.
 

Court's Statement

Meanwhile, two lawsuits against Ripple have already been transferred to federal courts in the United States. One of them was issued by a group of investors in late May. Its organizers also claim that they lost money, because they invested them in XRP under the influence of the company's statements, and assume that it can distribute unregistered securities. A third lawsuit with similar applications was filed in early July.

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   441

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.