XRP investors file new complaint against Ripple for issuing unregistered security under SEC guidance

Ripple • August 13, 2019, 12:22PM EDT
The Block

A group of XRP investors has filed an amended complaint against Ripple, arguing that the company’s tokens are unregistered securities under Securities and Exchange Commission (SEC)’s guidance. 

The complaint, filed on Aug. 5, is the latest addition to a year-old lawsuit against Ripple, although this time the plaintiffs are citing the SEC’s newly released "Framework for 'Investment Contract' Analysis of Digital Assets" and are seeking to define XRP as unlawful unregistered securities under the framework. 

The new filing also claims that Ripple violated California’s false advertising and unfair competition laws by allegedly “blurring differences between Ripple’s enterprise solutions and XRP to further drive demand,” and “paying exchanges to list XRP, limiting the supply of XRP to drive demand" among other things."

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Ripple has until Sept. 19 to respond to this new filing. 

The plaintiffs are asking for class-action status on behalf of all investors of XRP. Other notable prayers for relief include demanding the court to recognize XRP as a security and compensating for damages incurred by the plaintiffs and (putative) class members.

Coindesk first reported this news. 

About Author

Celia joined The Block as a reporter after earning her BA in the History of Science from the University of Chicago. Having spent years pondering over why 2+2 cannot equal 5, she is interested in the history and philosophy of mathematics, computation, and cryptography. She also had a very brief stint at Crunchbase News.

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