Ripple Faces Another Class-Action Lawsuit in the US

Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Read this Term-based Payments Payments One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl Read this Term startup Ripple has been hit with a fresh lawsuit for violating the United States securities law by selling XRP tokens, which fall under unregistered securities.

According to a May 1 filing at a US federal district court, the fresh lawsuit was filed by Bitcoin Manipulation Abatement LLC, alleging that Ripple and its CEO Brad Garlinghouse raised more than a billion dollars through sale and marketing of XRP, thus defrauding investors.

"[...]in order to drive demand for and thereby increase profits from the sale of XRP, Defendants have made a litany of false and misleading statements regarding XRP in violation of California's securities laws, and false advertising and unfair competition laws," the court filing noted.

With this lawsuit, the plaintiff is seeking to "recover damages" and "obtain other relief."

"Defendants have since earned massive profits by selling off XRP to the general public, in numerous offerings, having sold $1.1 billion in XRP to retail customers in exchange for legal tender cryptocurrencies," the complaint added.

In what is getting to be old hat, yet another lawsuit against Ripple and Mr. Garlinghouse saying that XRP is an unregistered security, created out of thin air, and serves no real purpose except to make a couple of people really rich. pic.twitter.com/4g79ZUA1oD

— Palley (@stephendpalley) May 4, 2020

A mysterious company seeking profits from big players

Notably, Bitcoin Manipulation Abatement is the same company behind the $150 million class-action lawsuit against crypto derivatives exchange FTX. Then it alleged the platform for manipulating the price of Bitcoin and also dragged Binance's name. A court, however, squashed all charges.

Despite involvement with major lawsuits, very little is known about this company.

Unlike Bitcoin or Ethereum, XRP is highly centralized. The company itself controls a major portion of the digital currency, which is designed for cross-border money transfers within Ripple's ecosystem.

Meanwhile, allegations on XRP being unregistered security is now new. The San Francisco-headquartered company is facing multiple similar allegations and fighting court battles.