Lawyers for a company called Bitcoin Manipulation Abatement LLC Filed Lawsuit at US District Court Ripple misled investors and sold XRP as a non-registered security in violation of federal law.
According to court records from May 1st the mysterious being with little online presence accused Ripple and Your Chief Executive Officer (CEO) Brad Garlinghouse plans to raise over a billion dollars by selling and marketing XRP as unregistered value.
“… In order to boost demand and thereby increase profits from the sale of XRP, the accused have made a litany of false and misleading statements about XRP in violation of California securities laws, false advertising and anti-unfair competition laws.”
Bitcoin Manipulation Abatement LLC Tries to “Claim Compensation” and “Receive Other Compensation”“in connection with the alleged violations.
The same company filed a $ 150 million lawsuit against Crypto Exchange FTX in November 2019.who was released a month later. Top-class members of the crypto community like that Binance CEO, Changpeng Zhao expressed her opinion on the claims to call them “very absurd”.
Ripple faces a long demand
The company had to face its fair share of legal action, whether short or not, for its XRP token, which is currently the third most important by market cap. A class action lawsuit filed by the lawyers of XRP investor Bradley Sostack in May 2018 has similar allegations of misleading investors and violating securities laws..
Although Sostack is demanding damages and compensation for legal costs, One of the stated goals was to recognize XRP as a value. However, an amendment tabled on March 25 indicated that he secured his bets on the possibility that the court would not recognize him as such. The US Securities and Exchange Commission has not yet issued a statement on this.