Against the company Ripple Labs has been re-filed. Ripple and its CEO, Brad garlinghouse is accused of being with Ripples Token XRP in a fraudulent Scam involved. This raises again the question of whether the XRP as the value of the paper is to classify it.
The lawsuit, which was on 27. June before the Supreme court of the state of California filed. Copyright was a private XRP Investor who formulated its action expressly on behalf of investors in a similar situation. Accused the company Ripple Labs and its CEO, Brad garlinghouse, to whom the unfair business methods of fraud, such as securities and price manipulation are accused of.
XRP is a value of paper?
It is the third lawsuit against Ripple within the last two months – all three have the same root. So it comes that the company Ripple Labs sell in the Form of the Token XRP registered securities. In contrast to Bitcoin, XRP are generated at a Central location and then brought to the market. So the companies do – if you will – a never-ending to ICO. Ripple Labs holds the majority of XRP-Token. The Prosecutor will have a securities-fraud case, according to California law recognized.
Ripple should also try to push the price of the XRP artificially. In December garlinghouse announced via Twitter that it is deposited by the 61 billion XRP 55 billion in an escrow account. The limitation of the offer to have influenced the significant increase in the price of XRP in the following months.
Answer by garling house
The CEO, Brad garlinghouse. In his opinion, it was the XRP-Token is not a security. Thus, the allegations in all three lawsuits would be obsolete, since they refer to the securities legislation in California. Garlinghouse lists three main arguments that speak against a classification of Ripples Token as the value of paper.
The technology is based on the XRP, Open-Source and not dependent on the company Ripple. Ripple Labs should no longer exist at some point, it would still be possible to trade XRP. On the other hand, it is already possible to buy shares in the company Ripple. Investors in the company, you must distinguish, however, clear from investors in XRP. The third Argument relates to the application of XRP in practice. A mere value of the paper could not play the role in transactions that met the Token of Ripple.
Ripples Chief Market Strategist Cory Johnson had made in the last month similar arguments. He also refused to consider the company Ripple and cryptocurrency XRP to very as a unit. He also compared Ripple with the payment service provider SWIFT, which he considers as the main competitors. The XRP complete, therefore, only a function in the Ripple Ecosystem – the transaction currency.