Ripple Labs, the company behind the Ripple payment protocol and XRP-based products, is facing another lawsuit alleging the company violated US securities laws.
According to the January 25 lawsuit, Tyler Tommy, an XRP investor from Florida, filed a lawsuit against Ripple Labs and Ripple CEO Brad Garlinghouse. The lawsuit alleges that the defendants did not comply with the Florida Securities Act by not registering with the Florida Financial Regulatory Authority.
Tommy noted that Ripple Labs and Garlinghouse are already facing a similar lawsuit due to alleged violations of federal securities laws. The US Securities and Exchange Commission raised $ 1.35 billion on December 22, 2020.
The new class action lawsuit accuses Ripple of selling millions of dollars without licensed XRP tokens and generates significant revenue from those sales, stating, “The vast majority of Ripple’s revenue came from XRP sales (over $ 1 billion) and Ripple is proud of that. sales to the operations fund “.
The plaintiff also argued that Ripple made false claims about XRP, stating that the token should not be classified as collateral. Tommy argued that the defendants knew that XRP was indeed a security apparatus:
“The Defendants made false statements and / or were negligent about material facts regarding the true nature of XRP. Specifically, the respondent knew XRP was in fact a security, but falsely reassures investors that it is not a guarantee. The Defendant learned that XRP was a guarantee before the Defendant sold XRP to the market. ”
Pursuant to Federal Rules of Civil Procedure, Toomey demanded a jury trial on all issues raised in the lawsuit.
After the Securities and Exchange Commission (SEC) filed a lawsuit against Ripple in late 2020, a large number of crypto companies, including Coinbase and Binance.US, have removed XRP from their platforms. The massive deletions appear to have impacted the XRP market as DOT Polkadot surpassed XRP in market cap on Jan.15. XRP is down more than 2% in the last 24 hours. At press time, the coin is trading at $ 0.26 according to Cointelegraph XRP Price Index.