The Daily Hodl
  • FEATURES
    • News
    • Bitcoin
    • Ethereum
    • Ripple and XRP
    • Altcoins
    • Trading
    • NFTs
    • Blockchain
    • Futuremash
    • Regulators
    • Scams
    • Crypto 101
  • HODLX
    • Latest Stories
    • FAQ
    • Submit Guest Post
  • INDUSTRY ANNOUNCEMENTS
    • Latest
    • Press Releases
    • ChainWire
    • Sponsored Posts
    • Submit Your Content
  • CRYPTO MARKETS
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Binance Coin (BNB)
  • BEGINNERS
    • What Is Bitcoin?
    • What Is Blockchain?
    • What Does Hodl Mean?
    • How to Pay Your Bills with Bitcoin
    • Best Bitcoin FAQs
    • Example of Bitcoin’s Purpose
    • Cryptocurrency Has Multiple Meanings
    • Authenticator Alert – Securing Your Crypto
  • SUBMIT
    • Guest Post
    • Press Release
    • Sponsored Post
    • Advertise
  • EMAIL ALERTS
  • DAILY HODL MIX
No Result
View All Result
  • FEATURES
    • News
    • Bitcoin
    • Ethereum
    • Ripple and XRP
    • Altcoins
    • Trading
    • NFTs
    • Blockchain
    • Futuremash
    • Regulators
    • Scams
    • Crypto 101
  • HODLX
    • Latest Stories
    • FAQ
    • Submit Guest Post
  • INDUSTRY ANNOUNCEMENTS
    • Latest
    • Press Releases
    • ChainWire
    • Sponsored Posts
    • Submit Your Content
  • CRYPTO MARKETS
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Binance Coin (BNB)
  • BEGINNERS
    • What Is Bitcoin?
    • What Is Blockchain?
    • What Does Hodl Mean?
    • How to Pay Your Bills with Bitcoin
    • Best Bitcoin FAQs
    • Example of Bitcoin’s Purpose
    • Cryptocurrency Has Multiple Meanings
    • Authenticator Alert – Securing Your Crypto
  • SUBMIT
    • Guest Post
    • Press Release
    • Sponsored Post
    • Advertise
  • EMAIL ALERTS
  • DAILY HODL MIX
No Result
View All Result
The Daily Hodl
No Result
View All Result

Ripple (XRP) Sued for Allegedly Violating State and Federal Securities Laws

by Daily Hodl Staff
May 4, 2018
in Altcoins

A new class action lawsuit filed in California accuses Ripple of violating state and federal securities laws by “selling XRP to the general public.”

The lawsuit was filed yesterday by Taylor-Copeland Law, a firm that primarily works on blockchain and cryptocurrency law.

Taylor-Copeland Law calls the sale of XRP a “never-ending initial coin offering” and alleges that “XRP has all the hallmarks of a security and that Ripple tries to obscure its sales of XRP by doing so on exchanges rather than directly.”

Taylor-Copeland says the lawsuit is being filed “on behalf of aggrieved investors who have sustained losses as a result of Ripple’s sale of XRP tokens.”

Ripple’s Director of Regulatory Relations Ryan Zagone recently told members of the UK Parliament why the company believes XRP is not a security.

Here’s what Zagone said in response to questions about how XRP is sold and how it should be classified:

“XRP is open source, meaning there’s many participants that make use of that technology. There are virtual currency exchanges that do sell it to retail consumers. They do so as either an investment or payment tool. Those are exchanges not related to Ripple. We, as a company, we make use of that same open source technology. We don’t sell it to retail consumers, so we only sell it to institutional market-makers and financial institutions. We have a license out of the state of New York to cover that activity – a BitLicense. It does not allow us to sell to retail consumers – to you or me. So we sell to institutional parties, and we have a partnership for open market selling as well, but that is not to – we don’t directly sell to you or me, only to financial institutions.

There are exchanges that make use of that open source tech. That’s tech not controlled by our company that existed before our company, outside of our control. We’re just leveraging it as a tool, so they are selling it on the market – other exchanges are.

You would buy [XRP] on a virtual currency exchange from other parties that have XRP. Half the XRP is open in the market at exchanges. You would buy it on that exchange from a party that’s looking to sell it. Given this dynamic, we as a company make use of this tech in the enterprise space. There’s also exchanges selling it in the consumer space. We’ve called for a global recommendation for licensing of those exchanges to ensure that there’s consumer protection, AML and safety and soundness measures to make sure those exchanges are also safe.”

The lawsuit claims the company conflated Ripple’s technology with Ripple’s cryptocurrency XRP.

“In order to increase demand for XRP, and thereby increase the profits it can derive by selling XRP, Ripple Labs has consistently portrayed XRP as a good investment, relayed optimistic price predictions, and conflated Ripple Labs’ enterprise customers with usage of XRP. For example, in 2014, Ripple Labs publicly stated that “we will engage in distribution strategies that we expect will result in a stable or strengthening XRP exchange rate against other currencies.” Ripple Labs greatly increased these efforts to push XRP on the general public in 2017 and 2018.”

The lawsuit also alleges that Ripple offered to bribe exchanges Gemini and Coinbase to list XRP.

According to the filing:

“In or about the fall of 2017, Ripple Labs is reported to have offered Coinbase more than $100 million worth of XRP to start letting users trade XRP. A Ripple executive is also reported to have asked whether a $1 million cash payment could persuade Gemini to list XRP in the third quarter of 2017. Although both Gemini and Coinbase declined to pursue these proposals, in late 2017 and early 2018 rumors that XRP would be added to Coinbase fueled its price increase. Plaintiff is informed and believed and based thereon alleges that Ripple Labs was the source of these rumors.”

So far, Ripple has not responded to the lawsuit.

Don't Miss a Beat – Subscribe to get crypto email alerts delivered directly to your inbox

Check Price Action

Follow us on Twitter, Facebook and Telegram

Surf The Daily Hodl Mix

Check Latest News Headlines


 
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Submit a Press Release

Industry Announcements

  • Bunzz Raises $4.5 Million Seed Round To Expand Its Smart Contract Hub for DApp Development
    January 24, 2023
  • Dogecoin and Shiba Inu Better Watch Out – Floki Just Had Three Big Things Happen for It
    January 24, 2023
  • Crypto Marketing – What Initiatives Will Bring More Value and Users in 2023
    January 23, 2023
  • Make Crypto Payments on BChat Web 3.0 Messenger – BChat Integrates Beldex Wallet
    January 22, 2023
  • KEY3.id Supports Multi-Chain Transaction, Partnership With KuCoin Wallet, CoinHub Wallet and Wallet3 To Launch 2023 Lucky Transaction Campaign With Over 30,000 Participants on Social
    January 20, 2023
  • Deposit EUR/GBP at Zero Percent Fees With Newly Launched SEPA/FPS Channels on Bitget
    January 19, 2023
  • Coinbase Lists Kava, Advancing Ethereum–Cosmos Interoperability
    January 18, 2023
Submit a Guest Post
ADVERTISEMENT
Bitcoin
$22,796.11
$22,796.11
4.16%
Ethereum
$1,567.22
$1,567.22
4.8%
Cardano
$0.372423
$0.372423
6.04%
XRP
$0.395426
$0.395426
4.69%
Dogecoin
$0.08786
$0.08786
2.74%

Spotlight

  • Analyst Benjamin Cowen Issues Crypto Warning, Says Bitcoin (BTC) Rally Likely Unsustainable – Here’s Why
    January 24, 2023
  • Leading Crypto Analyst Dives Into Bitcoin and Ethereum, Says Two Altcoins Are ‘Going Through the Roof’
    January 26, 2023
  • Four Under-the-Radar Altcoins Explode 100% or More in Just Seven Days As Crypto Markets Ignite
    January 30, 2023
  • Majority of Dogecoin (DOGE) Holders Now in Profit After Shiba Inu Rival Rallies 32% This Month: IntoTheBlock
    January 25, 2023
DON'T MISS A BEAT
Crypto headlines delivered daily
to your inbox
BTC, ETH, XRP news alert options
By joining The Daily Hodl news list you agree to our
Terms and Conditions and Privacy Policy.
Featured Image: Shutterstock/Billion Photos

Cryptocurrency news and analysis, covering Bitcoin, Ethereum, Ripple, XRP, altcoins and blockchain technology

Categories

Bitcoin • Ethereum • Trading •
Ripple and XRP • Altcoins •
Blockchain • Regulators •
Scams • Crypto101 • HodlX •
Futuremash •
Industry Announcements

ABOUT US | EDITORIAL POLICY | PRIVACY POLICY
TERMS AND CONDITIONS | CONTACT | ADVERTISE

JOIN US ON TELEGRAM

JOIN US ON TWITTER

JOIN US ON FACEBOOK

COPYRIGHT © 2017-2023 THE DAILY HODL

No Result
View All Result
  • FEATURES
    • News
    • Bitcoin
    • Ethereum
    • Ripple and XRP
    • Altcoins
    • Trading
    • NFTs
    • Blockchain
    • Futuremash
    • Regulators
    • Scams
    • Crypto 101
  • HODLX
    • Latest Stories
    • FAQ
    • Submit Guest Post
  • INDUSTRY ANNOUNCEMENTS
    • Latest
    • Press Releases
    • ChainWire
    • Sponsored Posts
    • Submit Your Content
  • CRYPTO MARKETS
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Binance Coin (BNB)
  • BEGINNERS
    • What Is Bitcoin?
    • What Is Blockchain?
    • What Does Hodl Mean?
    • How to Pay Your Bills with Bitcoin
    • Best Bitcoin FAQs
    • Example of Bitcoin’s Purpose
    • Cryptocurrency Has Multiple Meanings
    • Authenticator Alert – Securing Your Crypto
  • SUBMIT
    • Guest Post
    • Press Release
    • Sponsored Post
    • Advertise
  • EMAIL ALERTS
  • DAILY HODL MIX

© 2023 The Daily Hodl