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Attorneys for a company called Bitcoin Manipulation Abatement LLC have alleged Ripple and its CEO of violating security laws while selling and marketing XRP, the native crypto asset built by Ripple.
The firm has filed a lawsuit in a United States federal district court claiming Ripple deceived investors and sold XRP as an unregistered security, thus infringing the present federal law.
As per the court documents filed on 1st May, the secretive entity with diminutive online presence accused Ripple and its CEO Brad Garlinghouse of raising over one billion USD via the sale and marketing of XRP cryptocurrency as an unregistered security.
The document mentions,
“…in order to drive demand for and thereby increase profits from the sale of XRP, Defendants have made a litany of false and misleading statements regarding XRP in violation of California’s securities laws, and false advertising and unfair competition laws.”
The firm is looking to recuperate damage and obtain other respite related to the supposed violations. In November 2019, the aforementioned firm filed a hundred and fifty million USD lawsuit against digital asset derivatives exchange FTX. Interestingly, the lawsuit was terminated one month later. Several members of the cryptosphere called the lawsuit claims to be very far-fetched.
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