- Ripple Moves To Dismiss XRP Lawsuit As It Avoids Securities Question
Ripple News Update- The ongoing legal battle between Ripple and investors seems to have little effect on XRP markets. The token has been trading sideways for weeks before it made significant gains a few days ago. Though the token recorded a loss of nearly 1% on the day, it held on to most of the gains. Currently, it is trading at just below $0.30.
Ripple Moves to Dismiss the Lawsuit
On September 20, Fortune uploaded a court filing in which lawyers representing Ripple dismissed the claims against the company. XRP purchasers have sued the blockchain network for sales of unregistered securities. Bradley Sostack, the plaintiff, pointed out that the sales of XRP token in 2013 by Ripple constituted an unlawful securities offering.
The lawsuit filed by investors against Ripple claimed that the blockchain network’s sales of altcoin, XRP, violated the U.S securities laws. Ripple had filed a motion denying the allegations against its operations. However, Ripple’s dismissal of the claims against it has raised concerns about the legality of the token, XRP.
In its court filing, Ripple claimed that Sostack has no standing to file a complaint against the company. The blockchain network pointed out that the statue of repose has expired. The plaintiff failed to bring the case to court within three years of the initial sales of the altcoin. Ripple further stated that the plaintiff didn’t allege that he bought XRP tokens during the initial offerings. Besides, Sostack didn’t claim that he purchased the XRP from any of the defendants.
XRP (XRP) Price Today – XRP / USD
Despite Ripple’s arguments for the dismissal of allegations against it, the blockchain company avoided the question about XRP being a security. The motion to dismiss the lawsuit only addressed the question in footnote 19. It stated that since XRP isn’t an “investment contract”, it is not a security. The filing pointed out that “XRP is a currency” and so cannot be regarded as security under the law.
However, fresh suspicions are circulating due to the failure of the motion to fully address the securities question. Jake Chervinsky, a crypto-focused lawyer, noted that the filing lacked a single argument that will squarely address the claims that XRP is unregistered security. In his tweet on Friday, Chervinsky pointed out that Ripple made twelve different arguments for the dismissal of claims against it.
Furthermore, the filing for the dismissal of the lawsuit against Ripple stated that the court doesn’t have to resolve whether XRP is a currency or security. It revealed that a hearing has been scheduled for early 2020. Besides, the attorneys have affirmed their willingness to argue the motion then.
The case against Ripple started when XRP purchasers first filed lawsuits against the company in early 2018. Then, the blockchain network was alleged to have used proceeds from the sales of XRP to fund its operations.