Ripple Founder Hit with Yet Another US Lawsuit, Sued for Securities Fraud
- The lawsuit, filed by a private XRP investor, is a class-action suit against Ripple Labs which also mentions Ripple CEO.

For the third time in less than two months, a fresh lawsuit has been filed against the founders of Ripple Ripple Ripple was co-founded by Jed McCaleb and Chris Larsen and was debuted in 2012 as both a digital disbursement network and a pre-mined digital coin denoted as XRP. Possessing less market cap than both Bitcoin and Ethereum, Ripple ranks as the third-largest cryptocurrency.Its dual open-source and peer-to-peer (P2P) decentralized platform whose network is capable of working with any form of money such as GBP, Ethereum, Yen, etc. What is Ripple Used For? Known as a gateway, participants of Ripple may send and receive currencies to public digital address codes through the Ripple network. You can think of a gateway as a payment intermediary for Ripple. Serving as a bridge currency, XRP allows for a seamless exchange of any currency (fiat or cryptocurrency) due to each currency possessing its own gateways such as BitPay, CoinsBank, Blockonomics, and CoinGate. Unlike Bitcoin, the Ripple network does not support proof-of-work (PoW) or proof-of-stake (PoS) systems. Instead, a consensus protocol is employed to authenticate and verify that each transaction and account balance match.This ensures the integrity of the Ripple network while lessening the risk of double-spending, all while these confirmations take no longer than 4 seconds to complete.Ripple’s IOU gateway is similar to the traditional banking systems, where contractual obligations are upheld while the potential of transactions defaulting is a constant variable with counter-party risk. Coincidentally, banks are said to be increasing their usage of the Ripple payment system while its market cap shows evidence of its value and demand. All transactions performed over the Ripple network are logged and may be seen on the Ripple consensus ledger. For trading, XRP is generally traded in the form of CFDs. Ripple was co-founded by Jed McCaleb and Chris Larsen and was debuted in 2012 as both a digital disbursement network and a pre-mined digital coin denoted as XRP. Possessing less market cap than both Bitcoin and Ethereum, Ripple ranks as the third-largest cryptocurrency.Its dual open-source and peer-to-peer (P2P) decentralized platform whose network is capable of working with any form of money such as GBP, Ethereum, Yen, etc. What is Ripple Used For? Known as a gateway, participants of Ripple may send and receive currencies to public digital address codes through the Ripple network. You can think of a gateway as a payment intermediary for Ripple. Serving as a bridge currency, XRP allows for a seamless exchange of any currency (fiat or cryptocurrency) due to each currency possessing its own gateways such as BitPay, CoinsBank, Blockonomics, and CoinGate. Unlike Bitcoin, the Ripple network does not support proof-of-work (PoW) or proof-of-stake (PoS) systems. Instead, a consensus protocol is employed to authenticate and verify that each transaction and account balance match.This ensures the integrity of the Ripple network while lessening the risk of double-spending, all while these confirmations take no longer than 4 seconds to complete.Ripple’s IOU gateway is similar to the traditional banking systems, where contractual obligations are upheld while the potential of transactions defaulting is a constant variable with counter-party risk. Coincidentally, banks are said to be increasing their usage of the Ripple payment system while its market cap shows evidence of its value and demand. All transactions performed over the Ripple network are logged and may be seen on the Ripple consensus ledger. For trading, XRP is generally traded in the form of CFDs. Read this Term Labs, the company behind the cryptocurrency Ripple (XRP). The plaintiff alleges that the defendants have made money by breaking state and federal securities laws and misleading the public through the sale of unregistered ripple tokens (XRP).
Plaintiffs are asking for a refund as well as damages, and allege organizers sold unregistered securities under California’s Corporate code.
The lawsuit, filed by a private XRP investor, is a class-action suit against Ripple Labs which also mentions Ripple CEO Brad Garlinghouse. Moreover, the lawsuit claims XRP is part of a never-ending initial coin offering.
The plaintiff detailed in his filing that all signs point to XRP being a security, which requires the company to disclose certain information to investors, including potential risks. Citing that 20 billion tokens were given to Ripple Labs’ founders and 80 billion to the company itself, he alleges that the defendants earned massive profits by quietly selling off these XRP tokens to the general public.
Furthermore, the suit states that the defendants have employed several tactics to artificially drive demand and increase the price of XRP. One example, according to the private investor, was placing 55 billion XRP in a cryptographically-secured escrow account to allegedly create certainty of coin supply. At the time, the company said this lockup was made only to eliminate any concern that Ripple could flood the market, but in fact, the action pushed the token price up by around 1000 percent.
Tom Channick, Ripple’s head of corporate communication, commented earlier on the ongoing litigation, saying that like any civil proceeding, they assess the merit or lack of merit to the allegations at the appropriate time.
“Whether or not XRP is a security is for the SEC to decide. We continue to believe XRP should not be classified as a security,” he added.
For the third time in less than two months, a fresh lawsuit has been filed against the founders of Ripple Ripple Ripple was co-founded by Jed McCaleb and Chris Larsen and was debuted in 2012 as both a digital disbursement network and a pre-mined digital coin denoted as XRP. Possessing less market cap than both Bitcoin and Ethereum, Ripple ranks as the third-largest cryptocurrency.Its dual open-source and peer-to-peer (P2P) decentralized platform whose network is capable of working with any form of money such as GBP, Ethereum, Yen, etc. What is Ripple Used For? Known as a gateway, participants of Ripple may send and receive currencies to public digital address codes through the Ripple network. You can think of a gateway as a payment intermediary for Ripple. Serving as a bridge currency, XRP allows for a seamless exchange of any currency (fiat or cryptocurrency) due to each currency possessing its own gateways such as BitPay, CoinsBank, Blockonomics, and CoinGate. Unlike Bitcoin, the Ripple network does not support proof-of-work (PoW) or proof-of-stake (PoS) systems. Instead, a consensus protocol is employed to authenticate and verify that each transaction and account balance match.This ensures the integrity of the Ripple network while lessening the risk of double-spending, all while these confirmations take no longer than 4 seconds to complete.Ripple’s IOU gateway is similar to the traditional banking systems, where contractual obligations are upheld while the potential of transactions defaulting is a constant variable with counter-party risk. Coincidentally, banks are said to be increasing their usage of the Ripple payment system while its market cap shows evidence of its value and demand. All transactions performed over the Ripple network are logged and may be seen on the Ripple consensus ledger. For trading, XRP is generally traded in the form of CFDs. Ripple was co-founded by Jed McCaleb and Chris Larsen and was debuted in 2012 as both a digital disbursement network and a pre-mined digital coin denoted as XRP. Possessing less market cap than both Bitcoin and Ethereum, Ripple ranks as the third-largest cryptocurrency.Its dual open-source and peer-to-peer (P2P) decentralized platform whose network is capable of working with any form of money such as GBP, Ethereum, Yen, etc. What is Ripple Used For? Known as a gateway, participants of Ripple may send and receive currencies to public digital address codes through the Ripple network. You can think of a gateway as a payment intermediary for Ripple. Serving as a bridge currency, XRP allows for a seamless exchange of any currency (fiat or cryptocurrency) due to each currency possessing its own gateways such as BitPay, CoinsBank, Blockonomics, and CoinGate. Unlike Bitcoin, the Ripple network does not support proof-of-work (PoW) or proof-of-stake (PoS) systems. Instead, a consensus protocol is employed to authenticate and verify that each transaction and account balance match.This ensures the integrity of the Ripple network while lessening the risk of double-spending, all while these confirmations take no longer than 4 seconds to complete.Ripple’s IOU gateway is similar to the traditional banking systems, where contractual obligations are upheld while the potential of transactions defaulting is a constant variable with counter-party risk. Coincidentally, banks are said to be increasing their usage of the Ripple payment system while its market cap shows evidence of its value and demand. All transactions performed over the Ripple network are logged and may be seen on the Ripple consensus ledger. For trading, XRP is generally traded in the form of CFDs. Read this Term Labs, the company behind the cryptocurrency Ripple (XRP). The plaintiff alleges that the defendants have made money by breaking state and federal securities laws and misleading the public through the sale of unregistered ripple tokens (XRP).
Plaintiffs are asking for a refund as well as damages, and allege organizers sold unregistered securities under California’s Corporate code.
The lawsuit, filed by a private XRP investor, is a class-action suit against Ripple Labs which also mentions Ripple CEO Brad Garlinghouse. Moreover, the lawsuit claims XRP is part of a never-ending initial coin offering.
The plaintiff detailed in his filing that all signs point to XRP being a security, which requires the company to disclose certain information to investors, including potential risks. Citing that 20 billion tokens were given to Ripple Labs’ founders and 80 billion to the company itself, he alleges that the defendants earned massive profits by quietly selling off these XRP tokens to the general public.
Furthermore, the suit states that the defendants have employed several tactics to artificially drive demand and increase the price of XRP. One example, according to the private investor, was placing 55 billion XRP in a cryptographically-secured escrow account to allegedly create certainty of coin supply. At the time, the company said this lockup was made only to eliminate any concern that Ripple could flood the market, but in fact, the action pushed the token price up by around 1000 percent.
Tom Channick, Ripple’s head of corporate communication, commented earlier on the ongoing litigation, saying that like any civil proceeding, they assess the merit or lack of merit to the allegations at the appropriate time.
“Whether or not XRP is a security is for the SEC to decide. We continue to believe XRP should not be classified as a security,” he added.