A group of investors filed a lawsuit demanding that XRP tokens be recognized as a security that is not registered with the US Securities and Exchange Commission (SEC).
In a new lawsuit, several arguments were added to indicate a company’s violation of US laws. Plaintiffs noted that Ripple violated California state laws in the area of unlawful competition and misleading advertising.
“The company is trying to hide the difference between Ripple’s corporate solutions and the XRP token in order to spur the demand for cryptocurrency. Ripple pays exchanges for listing XRP on its platforms, and then limits the liquidity of the token in order to increase demand for it, ”the lawsuit said.
At the same time, the plaintiffs demand compensation for their losses, as well as the recognition of XRP tokens as securities. If the claim is satisfied, Ripple may encounter difficulties in selling its token stock. Note that the company must respond to the lawsuit before September 19.
Recently, a user of the social network Twitter with the nickname Crypto Bitlord filed a petition on Change.org, which called on Ripple to stop “dumping” the company’s XRP tokens onto the market.