Bitcoin, Crypto currency, Blockchain

Breathe a sigh of relief at Ripple Labs: a third party lawsuit dismissed

2493eb9be6bea2632af4ad47639f4c81 - Breathe a sigh of relief at Ripple Labs: a third party lawsuit dismissed


Breathe a sigh of relief at Ripple Labs. In may of this year, filed a class action by the Investor Ryan Coffey was last Saturday, the 11. August, dismissed. The plaintiffs wanted to have the procedure before the Federal court, because a favorable ruling would have represented a country-wide precedent. The U.S. district court of California, however, has decided not to treat this case. Thus, the action was terminated prematurely.

The investors to Ryan Coffey complained to the payment of damages, because, according to their view, financial losses on the investment in the crypto-currency, XRP were created. The operator of the crypto-currency, Ripple Labs, have the price of XRP using “offensive” and excessive “sensation, it’s funny” messages in the media are manipulated, it said. CEO Brad Garlinghouse led the investor with his ambiguous statements about the increase in the value of XRP is misleading.

XRP from Ripple Labs in the securities or currency?

The core point of the lawsuit was, however, the XRP was to be regarded as securities and not as a currency. This is based on the grounds that this crypto-currency, in contrast to almost all other no money creation takes place through the Mining. The plaintiff also claimed that the payment network, Ripple is not designed to be decentralized as the Blockchain of the other crypto-currencies. As part of the securities of the XRP would fall under the uniform securities act of the United States, against the Ripple Labs had failed to act according to the applicants, over the long term.

After a thorough examination of the submitted documents, the district court came to the judgment that you don’t accept the claim simply. The strategy is to not let the procedure by the highest court to treat, not to went. Ripple Labs can breathe a sigh of relief. On the one hand, for the time being, no principle of judgment before the Federal court on the subject of XRP as the value of the paper or currency. On the other hand, this was the third and last suit, which was against the company is pending. However, as could be read in the media, threatens the Ripple Labs Inc. already new legal Trouble.

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