Suit Filed Against Ripple
May 8, 2018
Ryan Coffey from San Diego (California, US) with assistance of his attorney James Taylor-Copeland has filed a class action suit against Ripple Labs, XRP II LLC, its CEO Bradley Garlinghouse and ten more persons associated with the above mentioned companies. The claimants are convinced the charged party has violated state laws on securities having attracted $100 million for selling unregistered XRP tokens.
The suit was lodged to Superior Court of California and demands reimbursing all loses incurred to Coffey and some other investors.
“[The lawsuit] arises out of a scheme by defendants to raise hundreds of millions of dollars through the unregistered sale of XRP to retail investors in violation of the registration provisions of state and federal securities laws”, the document says.
“From 2013 to the present, [the] defendants have been engaged in an ongoing scheme to sell XRP to the general public in a never ending ICO…Defendants’ sales of XRP to the public accelerated rapidly in 2017 and early 2018.”
Coffey asserts, Garlinghouse’s companies produced direct impact over XRP market, pumped demand and coin cost. As he put it, they did so due to “blur[ring] differences between Ripple Labs’ Enterprise Solutions and XRP” as well as bribe giving for coin listing to the US’ most popular exchanges, Gemini and Coinbase.
In addition, the complainant considers the ICO to become “a magnet for unscrupulous practices and fraud.”
Note that in July last year the US Securities and Exchanges Committee equaled ICO-tokens to securities and called selling of unregistered tokens illegal. Early April this year the Ripple’s chief market strategist Cory Johnson admitted XRP not compliant with the SEC regulations.