Class-Action Lawsuit Threatens Ripple’s Established Market

Class-Action Lawsuit Threatens Ripple’s Established Market

Ripple will have to defend itself in a long-running class-action lawsuit over claims it violated securities laws

in selling unregistered securities. In the lawsuit, XRP buyers allege that they lost a substantial amount of money on relying on fraudulent promotional statements issued by Ripple that encouraged them to sell their XRP Tokens.

Court Ruling

The class-action lawsuit takes Ripple into a task for selling unregistered securities in total disregard of security laws in the US. A US District Court has since ruled that the class-action lawsuit can proceed, be it with some caveats. The class-action lawsuit will now cover claims filed under the federal law while sidelining all claims filed under the California state law. While the ruling relieves Ripple of some pressure, affected XRP investors can still file new claims under California laws within the next 28 days. The court, in its verdict, dismissed Ripple’s argument that the lawsuit was not timely and thus should be thrown out.

Enter Your E-mail Address To Subscribe

The class-action lawsuit was filed five years after XRP hit the markets. Ripple, in its arguments, insists that if the lawsuit is allowed to proceed, it could destroy the XRP market share in the global cryptocurrency space.

Ripple Concerns

The lawsuit threatens Ripple’s continued operations in the multi-billion industry. For instance, there are concerns that regulators could end up concluding that the cryptocurrency is an unregistered security and so should not trade on the capital markets.

Polkadot Targets Onboarding Ethereum Ecosystem with Chainlink Oracles

To date, the US Securities and Exchange Commission has yet to take a stand on what cryptocurrencies are, let alone XRP. The Ripple class-action lawsuit is in its second year, a number of complaints having been consolidated and moved from state courts into the federal court. Ripple’s price has already taken a hit on the market, tanking by more than 8.2% as the class-action lawsuit continues to threaten its future in the market. Growing concerns that the lawsuit could threaten XRP’s share in the $500 billion markets is the latest tailwind taking a toll on altcoin market sentiments.

Article Produced By
Ankit Singhania

Based in India, Ankit is a financial content writer and stock market analyst. He has worked for almost a decade on several financial projects related to the stock market news, fundamental research and technical analysis for several websites. He obtained his Masters Degree In finance (MS – finance) from ICFAI. Currently, he serves as a financial consultant and technical analyst at Tradersinsights.

https://cryptocurrencynews.com/class-action-lawsuit-ripple-market/

Related articles

Basic Attention Token jumps 11 as Binance Futures launches BAT perpetual contracts

Basic Attention Token jumps 11% as Binance Futures launches BAT perpetual contracts Basic Attention Token derivatives on Binance In a recent blog post, the world’s largest cryptocurrency exchange by trading volume Binance revealed that it will launch a Basic Attention Token perpetual contract on its crypto derivatives trading platform, Binance Futures. The newest financial instrument […]

Learn More

Ripple Says Final Guidance’ From UK Regulator Hands XRP Long-Awaited Regulatory Clarity

Ripple Says ‘Final Guidance’ From UK Regulator Hands XRP Long-Awaited Regulatory Clarity                                  Ripple’s global head of government relations says a “final guidance” issued by the UK’s Financial Conduct Authority is offering long-awaited regulatory clarity for XRP in the country.On July 31st the FCA published its final guidance defining which crypto asset activities it regulates. […]

Learn More

Crypto Funds Are Outperforming You Shouldn’t Be Surprised

Crypto Funds Are Outperforming – You Shouldn’t Be Surprised                                       Buffet won handily. It’s not that Buffet didn’t think there were capable investment managers out there; Buffet’s Berkshire Hathaway has often been described as a giant hedge fund. Instead, his confidence relied on his intuition that between fees and trading costs, even the best […]

Learn More

Leave a Reply

Your email address will not be published. Required fields are marked *