Bitcoin Btc Data News Online
  • Latest
  • Altcoin
  • Analysis
  • Bitcoin
  • Blockchain
  • Guide
  • Market
  • Scams
  • Videos
No Result
View All Result
Bitcoin Btc Data News Online
No Result
View All Result
Home Ripple

Lawsuit: Investors Can’t Prove Ripple Knew XRP Had ‘No Utility’

The federal case against Ripple Labs has taken an unexpected turn, as the legal team representing the firm and CEO Brad Garlinghouse have argued any statements they made overstating the utility of the XRP token can’t be proven false.

According to court filings obtained by Law360, lawyers for Ripple and Garlinghouse have argued plaintiff and XRP investor Bradley Sostack is unable to prove that Ripple misled investors with bullish claims about XRP and sold the token as an unregistered security. The legal team referred to Sostack’s statements as “unsupported leaps of logic.” 

“In short, plaintiff fails to offer the factual allegations needed to show that Ripple’s and Mr. Garlinghouse’s statements were false when made,” the filing said.

‘No utility at all’

Lawyers for Sostack used the argument that “XRP has no utility at all,” something Ripple’s legal team says should have been raised in the initial lawsuit against the firm.

The original case against the crypto firm began in August 2019, when attorneys for Sostack filed a class-action lawsuit against Ripple, alleging that it had sold its XRP token as an unregistered security.

The case was amended in March to include a complaint accusing Garlinghouse of touting XRP to prospective investors while silently liquidating 67 million tokens from his holdings. The suit claimed that Ripple knowingly overstated the cryptocurrency’s actual utility as a “bridge currency” to facilitate international payments.

According to the filing, lawyers argue that Sostack has been unable to explain why any alleged misstatements made by Ripple or Garlinghouse are in fact false.

“Plaintiff offers no reason and pleads no facts regarding how Mr. Garlinghouse’s statement could confuse the public if it is true,” the court filing stated.

Legal entanglements

In addition to Sostack’s case, a firm called Bitcoin Manipulation Abatement filed a lawsuit in a U.S. federal district court in May, accusing Ripple of similar charges: misleading investors by selling XRP as an unregistered security.

Related articles

XRP price fails to ignite recovery as SEC enforcement director leaves post

XRP price fails to ignite recovery as SEC enforcement director leaves post

January 15, 2021
GateHub to continue supporting XRP despite Ripple’s legal issues

GateHub to continue supporting XRP despite Ripple’s legal issues

January 14, 2021

Published at Fri, 31 Jul 2020 05:17:00 +0000-Lawsuit: Investors Can’t Prove Ripple Knew XRP Had ‘No Utility’

Share76Tweet47Pin17ShareSendShare

Related Posts

XRP price fails to ignite recovery as SEC enforcement director leaves post

XRP price fails to ignite recovery as SEC enforcement director leaves post

by BTC News
January 15, 2021
0

The XRP (XRP) price remained relatively unmoved on Thursday, Jan. 14, even as the broader cryptocurrency market ignited a recovery...

GateHub to continue supporting XRP despite Ripple’s legal issues

GateHub to continue supporting XRP despite Ripple’s legal issues

by BTC News
January 14, 2021
0

As Ripple faces serious legal charges over its associated token XRP, many crypto platforms have decided to drop support for...

Grayscale Investments liquidates all of its XRP… while it still can

Grayscale Investments liquidates all of its XRP… while it still can

by BTC News
January 14, 2021
0

Institutional crypto-fund manager Grayscale Investments has begun the dissolution of its XRP Trust in response to the Security and Exchange...

Bakkt has no plans to support XRP, says CEO

Bakkt has no plans to support XRP, says CEO

by BTC News
January 12, 2021
0

Bakkt, one of the biggest cryptocurrency companies in the United States, will not support XRP as part of its further...

XRP whales are sinking fast

XRP whales are sinking fast

by BTC News
January 6, 2021
0

Wallets holding oversized XRP positions are plunging quickly in the wake of the United States Securities and Exchange Commission’s lawsuit...

  • Contact Us
  • Terms of Use
  • Cookie Privacy Policy
  • Privacy Policy
  • DMCA

© 2020 BTCData.org

No Result
View All Result
  • Latest
  • Altcoin
  • Analysis
  • Bitcoin
  • Blockchain
  • Guide
  • Market
  • Scams
  • Videos

© 2020 BTCData.org

  • bitcoinBitcoin(BTC)$31,584.003.18%
  • bitcoin-cashBitcoin Cash(BCH)$396.761.46%
  • tronTRON(TRX)$0.0294.04%
  • cardanoCardano(ADA)$0.3468.73%
  • moneroMonero(XMR)$137.164.13%
  • usd-coinUSD Coin(USDC)$1.0000.272%
  • zcashZcash(ZEC)$83.263.43%
  • augurAugur(REP)$18.986.97%
  • bytecoin-bcnBytecoin(BCN)$0.00016-3.12%
  • particlParticl(PART)$0.6244.61%