Lorenzo Stroe
Independent Analyst
- Ripple has been sued again, this time by Tyler Toomey on behalf of himself and others similarly situated.
- The class-action lawsuit states that that Ripple sold XRP unregistered securities tokens to Florida investors.
- XRP price is down by 8% in the past 24 hours following the news.
XRP is having a rough 2021. Ripple got sued by the SEC and now, the platform has been targeted again by another lawsuit, this time from Florida for the same reason. XRP is down more than 60% since its peak in 2020 at $0.78.
Ripple faces yet another lawsuit for illegal sales
The latest class-action lawsuit states that Ripple sold illegal securities (XRP) to Florida investors, citing the recent lawsuit from the SEC. According to the document, the defendants did not provide Florida investors with the required information regarding XRP.
Defendants began their unregistered and unlawful sale of XRP in 2013, despite having knowledge as early as 2012 that XRP could be considered an “investment contract” under federal and, by extension, Florida law. Nevertheless, Defendants chose to disregard filing requirements and initiated a vast offering of XRP without registration. Further, Defendants made affirmative representations to the investing public that XRP is not a security when in fact it is.
The Plaintiff is Tyler Toomey, a citizen of Florida, who purchased 135 XRP on November 24, 2020, for $97.8. Toomey had to sell some of his holdings at a loss after XRP price plummeted. Despite the small investment, the class action complaint is perfectly valid and could result in a jury trial, seeking injunctive relief.
XRP price can’t take a breather and it’s poised for a 30% downside move
XRP broke bearish from a descending triangle pattern on the 12-hour chart, that had a price target of $0.19 in the long-term. It seems that the recent announcement about another lawsuit and the overall market sell-off has pushed XRP over the edge.
XRP/USD 12-hour chart
It’s also important to note that below $0.20 there is practically no support until the low of $0.173 on December 29.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended Content
Editors’ Picks
TRON gains 10% in 2024, supply of stablecoins reaches over $50 billion in Q1
TRON, a blockchain-based digital platform, has seen positive growth in the first quarter of 2024, as seen in a Messari report. TRON noted gains across several metrics like market capitalization, revenue and total value locked.
XRP hovers near $0.50 as Ripple CTO addresses concerns related to stablecoin launch
XRP is hovering near $0.53 on Friday, spending nearly all week below $0.55. Ripple CTO David Schwartz addressed concerns on stablecoin and XRP utility on Thursday.
Terraform Labs set to restrict access for users in the US after recent ruling in SEC lawsuit
Blockchain company Terraform Labs said Thursday that it will restrict access to some of its products and services for US-based users as it expects to receive a court order soon in light of its legal battle against the US Securities and Exchange Commission (SEC).
Bitcoin Weekly Forecast: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s (BTC) recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.
Bitcoin: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s (BTC) recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.