Ripple have filed a motion to the courts to toss out the lawsuit that claims Ripple violated state and federal securities laws by selling its native token, XRP.

XRP investors filed the lawsuit on August 5, 2019, claiming that XRP tokens sold by Ripple are unregistered securities based on the guidance of the Securities and Exchange Commission (SEC).

In the mammoth 37-page document, Ripple have avoided the key question: is XRP a security or not? 

“Under Plaintiff’s own allegations, defendants offered XRP to the public throught 2013 through 2015. Accordingly, the three-year statute of repose expired as of 2016 (three years after the sales cited in May 2015 settlement) and in no case later than May 2018 (three years after the May 2015 settlement agreement in which ‘Defendants acknowledged that they sold XRP to the general public,’ Complaint ¶ 25). The Securities Act claims in the Complaint, filed August 5, 2019, are therefore untimely and barred by the statute of repose.”

(Extract from the motion)

The companies legal team cites several discrepancies within the lawsuit filed by Bradley Sostack, the lead plaintiff. Ripple have argued that the plaintiff should have filed the lawsuit in 2013 when the XRP token first became available in the market, not in 2018 when they first filed their claims.

Twitter users were quick to respond and lawyer Jake Chervinsky, (a crypto fan) :

“Ripple has finally filed their motion to dismiss in the pending securities class action regarding XRP. They make twelve separate arguments for dismissal of the plaintiff’s claims. Not a single one squarely addresses whether XRP is an unregistered security.”

We will await the court's verdict but it's clear this one may take some time to be resolved. In the meantime, XRP/USD had a decent run 3-4 days ago but has now pared back 50% of the move to trade at 0.2908 to just dipping under the psychological 0.3000 handle again.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Cryptos feed

Latest Crypto News


Latest Crypto News & Analysis

Editors’ Picks

Bitcoin price will drop to $14,000 before the bull run resumes

Bitcoin has taken the lead in the recent run-up in the cryptocurrency market yet again as it moved back above the $19,000 mark. Prices have managed to retain all the gains realized over the last few weeks after recording ...

More Bitcoin News

Cardano price is on the verge of a massive move, suggests critical indicator

Cardano has been trading relatively sideways for the past four days consolidating from its 2020-high at $0.183. The digital asset seems to be ready for a massive price move as bears and bulls continue fighting.

More Cardano News

Aave price jumps 10% following protocol upgrade, bulls target $110

The Aave V2 protocol is a major update of the platform and comes with new products like a yield and collateral swap allowing users to deposit their assets in the protocol and trade while being used as collateral.

More Aave News

BCH consolidates above 293.00 inside symmetrical triangle

BCH/USD rises to 293.83, up 0.50% intraday, during early Friday. Even so, the crypto pair keeps the two-day-old trading range below 298.00 while also respecting a short-term symmetrical triangle formation established from November 24.

More Bitcoin Cash News

BEST CRYPTO BROKERS/EXCHANGES




Gold Weekly Forecast: XAU/USD tumbles to multi-month lows on risk flows, technical selloff

Bitcoin has lived through a roller-coaster week. The pioneer digital currency hit another multi-year high of $19,500 and got really close to the all-time high on Wednesday. 

Read the weekly forecast

BTC

ETH

XRP