Earlier this year, some plaintiffs filed a class-action lawsuit against Ripple Inc. Ripple Inc. is a blockchain firm that is aimed at revolutionizing the cross-border payment space. Ripple has released a series of products that help to make cross-border payments cheaper, easier, faster, and more efficient. Ripple Inc. is the parent form of XRP (XRP). However, the digital currency is independent of the firm.
Plaintiffs Files a New Motion against Ripple Inc.
Ripple owns more than 50 percent of XRP, and this has made many to speculate that XRP is centralized. However, the firm has come out to declare that XRP and Ripple are independent of each other. Recently, a lawyer at Kobre & Kim LLP – Jake Chervinsky – tweeted about a recent development in the class-action lawsuit filed against Ripple.
Chervinsky tweeted about the development on the 8th of December. In his tweet, he said that the plaintiffs that claimed XRP (XRP) is a security have filed a motion to incarcerate in federal court. The case has been moved to federal court and the plaintiffs are asking to go back to state court.
According to the lawyer, the plaintiffs also asked Ripple to pay their legal fees. Adding that the shifting to federal court was frolicsome and it has no basis in fact or law. A couple of weeks ago, the lawyer of Ripple defended the firm and the lawsuit filed against the firm was moved to the Federal Court.
The lawyer said: “Plaintiffs don’t claim that they have deficient information regarding the nature of these transactions. However, plaintiffs allege that they were, in some way, injured due to the fact that the defendants were reportedly obligated to register XRP (XRP) as a security with the SEC but failed to do so.”
Chervinsky had previously released a series of tweets. In one of his previous tweets, he talked about the legal situation that top blockchain fintech companies encounter. Back in August, Chervinsky said that Ripple is defending 4 cases in California court. Two cases were battled in the apex court – Northern District of California. The other two cases were being defended in state courts – San Mateo County.
The lawyer continued his explanation in another tweet. He said that all the claims against Ripple pointed to a common case. The case is: XRP (XRP) is a security whereas Ripple Inc. violated federal and state law by not registering XRP before promoting, offering, and selling it to investors.
He also speculated the possible outcomes. One of the possible outcomes is if the plaintiffs lose. Concerning this, Chervinsky said: “If the plaintiffs lose, the Securities and Exchange Commission will have saved so much money and time. Have it in mind that they have limited resources for the digital currency industry. They also have their hands full prosecuting outright frauds and Ponzi schemes.
While the case has been moved from the state to federal level, the authorities are yet to make a final verdict.
XRP (XRP) Price Today – XRP / USD
XRP (XRP) is currently changing hands at 31 cents after an increase of about one percent over the past twenty-four hours. The current market cap of the digital currency is $12.70 billion and is trading volume over the past twenty-four hours is $435.95 million.