A group of investors filed an amended lawsuit against Ripple, claiming that XRP tokens are unregistered securities falling under the purview of the SEC and advertising of its products is misleading.
The first in a series of lawsuits against the parent, subsidiaries and management was filed back in May 2018. However, the latest additions oblige Ripple to respond on the merits by September 19 over the digital asset allegations..
In the new version of the complaint, investors are referring to the recently released SEC guidance on the classification of digital investment assets. Based on the analysis methodology within the document, they define XRP as illegal unregistered securities. In parallel, the plaintiffs provide evidence of a direct connection between the parent company and the entire product line and the impact of its activities on their success and value..
Allegations of false advertising and unfair competition have also been added to the application. The company allegedly blurs the distinction between Ripple and XRP enterprise solutions to stimulate demand, buy listing on exchanges and restrict the supply of its digital assets to create artificial scarcity..
SEC lawsuit will cripple crypto: Ripple CEO
Plaintiffs seek recognition of the collective status of the complaint, on behalf of all investors, and also ask for compensation for losses incurred by all RIPL holders.
Previously we reported that Facebook decided to play it safe and warned investors that it does not guarantee the launch of Libra.
text: Ivan Malichenko, photo: Medium, CNBC