One of the XRP investors filed a class lawsuit against the company Ripple, alleging that it violated Federal securities law, and the laws of the state of California, when he launched a public sale of tokens.
The Respondent also acts as the CEO of Ripple brad Garlinghouse. According to plaintiff, Ripple actually spent “endless ICO”, which should be classified as sale of securities under the provisions of the securities Act of the United States and California Code of corporations.
“The defendants received huge profits by quietly selling XRP to the General public, which can be regarded as infinite initial offer of coins (ICO). To raise the demand for XRP and rising profits from its sale, Ripple Labs on a regular basis positioned XRP as a good investment, sounded optimistic predictions about its prices, and also did XRP an integral part of corporate clientele”, — said in a lawsuit.
The main plaintiff is Ryan Coffey, who claims that on 6 January 2018 purchased 650 XRP for a price of $2.60. Less than two weeks later, on 18 January, he sold coins on the exchange for USDT (backed by the US dollar token Tether), losing a combined $551 or 32% of their investments in the token. It is argued that this loss in particular was the result of price fluctuations between the USDT and the actual U.S. dollar.
At the same time, the claim is classified as collective as submitted from the names of all investors who acquired the token XRP after 1 January 2013, i.e. from the inception of Ripple Labs.
The interests of the plaintiff is a California law firm Taylor-Copeland Law.
Meanwhile, a California based founder of the project Relayzero Lawson Baker argues that over the past few days with the 100 largest volumes of addresses XRP was removed 17% of the total issue of coins.
17% of the XRP supply recently moved from a top 100 address. Any one have details on this? A few days ago the top 100 accounts had 97% of the XRP. Now top 100 accounts have is 80% of the supply. @ummjackson, change in methodology? pic.twitter.com/yJiNEBSurN
— :: baker lawson :: (@lwsnbaker) 4 May 2018
According to him, quite recently on these accounts were 97% of all tokens, XRP, but now this figure is only 80%. For advice Lawson Baker appealed to the Creator of Dogecoin Jackson Palmer, but the one referring to dedicated this issue page on GitHub suggests that these funds could be transferred to a escrow address, where I am now.
Recall that the largest bitcoin after the Ethereum cryptocurrency and Ripple could be released in violation of U.S. law in the field of securities, in late April, said the former Chairman of the Commission on urgent exchange trade of the USA (CFTC) Gary Gensler.
Earlier this week there were also allegations that security may be deemed Ethereum.