Ripple faces another lawsuit for allegedly violating security laws

Ripple faces another lawsuit for allegedly violating security laws
Written by:
Jinia Shawdagor
5th May, 15:51
Updated: 5th May, 15:52
  • Bitcoin Manipulation Abatement LLC seeks to recover damages through this lawsuit.
  • The firm had previously sued FTX, a crypto derivatives exchange.
  • Ripple still has long-running lawsuits with one dating as far back as 2018.

Ripple, the company behind XRP is facing fresh charges for purportedly violating security laws. A report unveiled this news on May 5, noting that the firm suing Ripple is known as Bitcoin Manipulation Abatement LLC. The firm’s attorneys brought this case to a US federal district court accusing Ripple of misleading investors. Bitcoin Manipulation Abatement LLC’s lawyers added that Ripple sold XRP as an unregistered security.

In the court documents filed on May 1, Bitcoin Manipulation Abatement LLC also sued Ripple’s CEO, Brad Garlinghouse. According to the firm, Garlinghouse raised £800 million through the sale and marketing of XRP as an unregistered security.

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Per the plaintiffs, Ripple made a litany of false and misleading statements regarding XRP. As a result, the defendants allegedly drove the demand for XRP and increased profits from the sale of the token. As such, Bitcoin Manipulation Abatement LLC believes that Ripple violated California’s securities laws and false advertising and unfair competition laws.

Reportedly, the plaintiffs pressed these charges against Ripple in a bid to recover damages. On top of this, the firm seeks to obtain other relief related to the alleged violations.

Bitcoin Manipulation Abatement LLC is infamous for suing crypto firms

While Bitcoin Manipulation Abatement LLC is not well-known in the crypto sphere, this is not its first attempt at suing crypto firms. Before Ripple, the firm filed a £120 million lawsuit against FTX, a crypto derivatives exchange in the past year. The firm claimed that FTX had manipulated the market and sold unlicensed securities in the US. However, this case was thrown out of court after a month.

As a result of attacking FTX, Bitcoin Manipulation Abatement LLC triggered feedback from high-profile crypto community members. For instance, Binance’s CEO, Changpeng Zhao tweeted that the lawsuit was far-fetched considering the crypto community had already resolved such issues a long time ago.

Ripple’s unending lawsuits

Ripple has had its fair deal of lawsuits with some dating as far back as 2018. At the moment, Ripple continues facing charges of deceiving investors and violating securities laws. These charges were filed by the attorneys of XRP investor Bradley Sostack. While Sostack seeks damages and compensation for legal costs, he primarily aims to have XRP recognized as a security.

Do you think Bitcoin Manipulation Abatement LLC’s charges against Ripple will stick? Share your thoughts in the comment section below.

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