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A new Ripple class action lawsuit alleging the illegal sale of cryptocurrency has been filed in Florida. This is the latest case to surface after the Securities and Exchange Commission lodged a legal action against the payment processing company.
Lead plaintiff Tyler Toomey filed the Ripple class action lawsuit claiming he purchased about $100 worth of Ripple’s XRP tokens, a type of cryptocurrency, in November of 2020, then sold them at approximately 50 percent loss in December.
“The Defendants [Ripple] sold millions of dollars (or more) of XRP tokens, which are securities under Florida law, to Florida investors without registering the same either with federal or Florida authorities,” alleges the complaint.
According to the class action lawsuit, Ripple reaped $1.36 billion in the alleged illegal sale of its XRP tokens. The plaintiff accuses Ripple, along with its co-founder and CEO of being responsible for investor losses in Florida. He seeks to represent other Floridians who purchased XRP.
What is Ripple?
Ripple touts itself as a payments processor, providing a better payment experience for financial institutions using “the most advance blockchain technology.”
“Ripple is the only enterprise blockchain company today with products in commercial use by hundreds of customers across 55+ countries,” states the company’s website. “These businesses have access to alternative liquidity solutions through Ripple’s global network, which uniquely uses the XRP Ledger and its native digital asset XRP to help improve payments services worldwide.”
Ripple Faces SEC Class Action Lawsuit, Other Woes Over XRP
The Ripple class action lawsuit points to legal action initiated by the Securities and Exchange Commission alleging the executives of Ripple sold the cryptocurrency without registering the XRP tokens as a security.
“Defendants continued to sell unregistered XRP to consumers from 2013 through the present,” alleges the complaint. “However, after the filing of the SEC suit, several major cryptocurrency exchanges have elected to delist XRP, ostensibly to avoid liability for selling an unregistered security. This includes major exchanges Coinbase, Binance.US, OkCoin, and most recently Blockchain.com.”
The plaintiff accuses Ripple of enriching itself and its executives through the alleged illegal sale of XRP tokens. Toomey is seeking damages, as well as an injunction against the company for further sale of XRP.
Did you purchase XRP tokens from Ripple? What do you think of the Ripple class action lawsuits? Tell us in the comment section below.
Lead plaintiff, Tyler Toomey, and the proposed Class Members are represented by Sarah N. Westcot and Andrew J. Obergfell of Burson & Fisher PA.
The Ripple Class Action Lawsuit is Toomey v. Ripple Labs, Inc., et al., Case No. 3:21-cv-00093-BJD-JBT, in the U.S. District Court Middle District of Florida.
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18 thoughts onRipple Class Action Lawsuits Alleges Illegal Sale of Crypto, Investor Losses
Add me. Own over 250,000 xrp
Add me
I have been a holder of xrp for 6 years please add me. Brad have sold this to us and then sold and gave away billions per month.
Add me
Add me
add me both me and my gf bought xrp
add me too
Add me please, can’t trade or sell xrp!