Ripple’s blockchain start-up, XRP II, its head Brad Garlinghouse and 10 others received a lawsuit on behalf of investors, which was filed by an American Ryan Coffey. The basis was a violation of the Federal Securities Act and the California Code on Corporations.
The Rights Defender claims that the reason for the loss of his funds was the purchase and sale of Ripple tokens (XRP) during the “endless ICO”. Tokens were considered securities in this case. At the beginning of this year Brad owned 650 XRP tokens, which he received as a result of the purchase ($2.60 for one token). These tokens were sold by him after 12 days, and he received the tokenized USDT tokens in return. As a result, the plaintiff lost a third of the funds invested in the cryptocurrency.
The head of corporate communications Ripple, Tom Channick answered the charges by saying that only the SEC can determine the status of XRP tokens, that is, they were registered securities or not.
We remind you that Gary Gensler said that Ethereum and Ripple are mostly securities that are registered. He is sure that Ripple has almost nothing to give evidence to the contrary, as the company controls a large proportion of tokens and the project itself. Gary used to be the head of the US Futures Trading Commission (CFTC), and today he works as a teacher, a discipline that describes the students of MIT the proper use of blockchain technology for the financial sector.