Against Ripple filed another class action

Against Ripple filed another class action

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Blockchain-startup Ripple was involved in another trial involving the XRP cryptocurrency, CoinDesk writes.

Investor Vlad Zakinov filed a class action lawsuit on Tuesday, stating in him Ripple Labs, a licensed financial services provider XRP II, CEO Bred Garlinghouse and 25 anonymous as defendants.

Zakinov’s complaint is based on a statement that XRP is a security controlled by Ripple. He claims that he bought the cryptocurrency in January 2018 “and thus suffered”.

“XRP, despite being called a token, is a security, according to the laws of California. In particular: (1) Ripple uses funds received from the sale of XRP to finance its enterprise; (2) the company openly offers XRP to the general public; (3) the plaintiff and his group, in fact, can not control the success of Ripple and XRP; (4) the investments of the plaintiff and his group experience significant risks and do not receive protection,” Zakinov writes.

The statement also says that Ripple and other respondents “were required to register XRP when they offered or sold them”, which they did not do. In addition, the defendants “made a series of unsatisfactory statements that made the price of XRP grow,” which helped Ripple earn more money by selling its own tokens. Investors have lost money and can continue to incur losses, as they do not control Ripple.

A spokesman for Ripple said that his company denied any accusations: “Here is another example of how a extortionist promotes a self-serving lawsuit that is devoid of reasoning. We are sure that the accusations about XRP are completely groundless, that we are ready to confirm by law and in fact.”

A similar lawsuit against Ripple was filed in early May.

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