The company Ripple was involved in another trial associated with the legal classification of the bitcoin and XRP.
In a lawsuit filed in the Supreme court of California (County of San MATEO), argues that Ripple «created token XRP, and then used the sale of tokens to Fund their operations and development of the ecosystem XRP».
The lawsuit was filed by California resident David Ikonero (David Oconer). As the defendants named Ripple Labs, XRP II, CEO of Ripple Garlinghouse brad (Brad Garlinghouse) and 25 unnamed individuals associated with the firms. The lawsuit alleges:
«Token XRP offered and sold by defendants, has all the traditional hallmarks securities, but the defendants did not register the token accordingly. Buying XRP is an investment contract, because the buyers of XRP, including the plaintiff, did provide some reward to the company (in the form of Fiat currencies like the US $ or other cryptocurrencies) in exchange for XRP. Buyers XRP reasonably expected to profit from the ownership of XRP, and the defendants themselves have often emphasized the profit as the main motive for investment.»
As in previous trials, the lawsuit claims damages from falling prices at the beginning of this year. It is noted that while the traditional securities allow owners some control over the firm, XRP does not. In addition, the claim of Oconee argues that Ripple has full control over the registry XRP and that the network is not decentralized as Bitcoin or Ethereum.
The suit follows two similar legal proceedings, about which we wrote
the company informed. A former Chairman of the securities and exchange Commission (SEC) Mary Jo white (Mary Jo White) and former representative SEC Ceresna Andrew (Andrew Ceresney) represented the company in the first trial, though it’s unclear whether they plan to act in a similar role and other claims. In addition, it became known that the new York law firm Skadden Arps represents the Ripple in at least one of the claims.
Earlier Arlinghaus publicly stated that «XRP is not a security». In addition, he argued that the registry XRP decentralized and is not dependent on Ripple Labs, and that the purchase token XRP gives the investors a share of ownership in Ripple, that is, they do not become shareholders.
It is noteworthy that a similar lawsuit was also filed this week by investor Avner Greenwald (Avner Greenwald). In this lawsuit, the plaintiff also claims that XRP is a valuable paper.
Recently, representatives of the Ripple decided to distance
XRP from the company through a rebrand cryptocurrencies. They even created a Twitter account devoted to the development of a new logo, as well as a page on Github.
Some believe that Ripple has taken this step to XRP ceased to be security, because this effect had been made regulation experts. In addition, to date, against the company has already filed four suits with similar allegations. In addition, a recent study Bitmex Research confirms that the XRP system is even more centralized than previously thought, and the creation of a logo is unlikely to change that.
The question of whether the XRP security or not, is not the first month in the air. Especially actual it becomes at that time as representatives of the us regulators have expressed their opinion with respect to other cryptocurrencies. For example, recently the Chairman of the SEC stated that «bitcoin the currency, not paper». Shortly thereafter, the Director of corporate Finance regulator also noted that the ether does not fall under the definition of securities.
Despite the fact that the official position of the regulators with respect to XRP not yet announced, it is highly likely that eventually the token will be recognized as the action, and it will not only affect the coin price, but also on its availability on the U.S. exchanges.