Ripple Labs has in numerous instances painted XRP as an ideal investment. Time and again it has relayed optimistic price predictions about it. And it was in its latest statement that called upon all the interested investors to move ahead and make investments. It insisted that they had to begin by contacting Johson Fistel, LLP which happens to be a shareholder rights law firm.
The launch of the class action lawsuit against Ripple
The launch of the class action lawsuit against Ripple had everything to do with the carrying out of investigations in a bid to establish whether or not Ripple was innocent over the claims that were leveled against it.
A person well conversant with the latest developments but who at the same time wanted his identity kept anonymous for reasons best know to him disclosed that quiet a large number of defendants have managed to accumulate high profits through the sale of the XRP to the general public.
Ryan Coffey was the man behind the original action lawsuit targeting Ripple (XRP). Coffey made claims that Ripple Labs which is based in San Francisco was in violation of both the federal and state securities laws.
The suit spelt out that over a long period of time Ripple had been undertaking the sale of unregistered securities which it was doing using the US Securities Act and the California Corporations Code.
The distribution model of XRP is a centralized one and it then adds up why Gary Gensler, the Chairman of CFTC Commission, resolved to classify the XRP tokens as ‘non-compliant securities.’
Different perspectives regarding the matter
There is currently a lot of legal confusion in the crypto space. Market observers believe it is resulting from the murky interpretations on ways in which most of the financial regulations should govern cryptocurrencies.
There is currently a great buzz surrounding the lawsuit, but the shocking aspect is the way in which most of the executives working with Ripple have continued to showcase less concern.
The spokesperson of Ripple Tom Channick has said that till this moment they haven’t yet been served with the filed lawsuit. He said that upon being served they would check out the merits of the case. According to him, it was supposed to be left for SEC to decide on whether or not XRP was a security.