Investor Ryan Coffey, who claims to have lost money by buying and selling cryptocurrency XRP, filed a lawsuit against Ripple. The lawsuit stated that the company had violated state and Federal securities laws, writes CoinDesk.
Acting on behalf of the investor, a lawyer from San Diego James Taylor-Copeland filed Thursday a lawsuit in the Supreme court of the County of San Francisco. Koffi claims damages “all investors who purchased tokens Ripple (XRP), issued and sold by the defendants of Ripple, XRP II (registered and licensed MSB), from Executive Director Brad Garlinghouse and 10 unnamed parties.”
Ripple Labs and Garlinghouse studied connection with XRP, cryptocurrency market capitalization which rose in January to $ 140 billion, but then fell below $ 35 billion on Tuesday, Ryan Paddock, Director for legal issues Ripple, said to the UK parliamentary Committee that “between Ripple and XRP is no direct connection.”
However, according to some observers, the connection between the company and the cryptocurrency apparent.
“Development of XRP and the profits that investors had expected to, was and still is solely based on technical, managerial and entrepreneurial efforts of the Defendants and third parties hired by Defendants”.
Federal law requires companies that sell securities registered in the securities and exchange Commission (SEC). From this point of view, this trial may be indicative, given that the question of ownership of the XRP to the securities remains open.
On this occasion, the head corporate communications Ripple That Jannik commented that only the SEC can decide XRP applies to registered or unregistered securities or not. In his opinion, XRP are not.