A new lawsuit hits Ripple

The society of crypto-currency, Ripple is not yet at the end of his sentences. While it is not yet the output of many legal actions which have been directed against it, it is already in the resolution of other litigation.

False statements

The lawyer Pavel Pogodin has recently introduced, through the company’s puerto rican Consensus Law, a class action against the company Ripple as well as Brad Garlinghouse, the CEO. The reason for this lawsuit is the offence of the current legislation on the securities in the sale of tokens, XRP.
The company has apparently induce the investors in error regarding the asset with a promise of windfall profits. A closer look, the society of crypto-currencies has been designed for the sole purpose of increasing the wealth of a handful of people, including the founders.
Moreover, the document of the complaint contains passages mentioning the vagueness of the XRP. On the one hand, investors see it as a title because they were convinced to be able to take advantage of them. But on the other hand, the law firm representing the action demonstrates that this is not a currency, given that the XRP could not intervene in the commercial transactions.
Always about this controversial status of the token, the latter presents a point of dissimilarity with the crypto-currency decentralized, such as BTC and ETH. In 2013, Ripple has used a centralized system to issue $ 100 billion of chips, which leads to questions about what investors are dealing with.

The use of almost identical

The past court of Ripple has been punctuated by numerous affairs that had confronted with its major investors. It is clear that these allegations are similar to those deposited currently by Pavel Pogodin.
In a previous case, the corporation may pay damages and interest for having failed to register its token with the Securities and Exchanges Commission (SEC). The investors in california, who filed the class action also accuse the platform because of the false allegations, and negligence in the deposit of the documents required by way of compliance.
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About the author

Jeremiah Faber

Jeremiah Faber

Jeremiah is an explorer by heart – both in the physical and the digital realm. A traveler, Jeremiah continues to visit new places throughout the year in the physical world, while in the digital realm has been instrumental in a number of Kickstarter projects. Technology attracts Jeremiah and through his business acumen has gained financial profits as well as fame in his business niche.

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