RATE Group | Mysterious Company Files New Lawsuit Over Ripple’s $1.1B XRP Sale
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Mysterious Company Files New Lawsuit Over Ripple’s $1.1B XRP Sale

05 May Mysterious Company Files New Lawsuit Over Ripple’s $1.1B XRP Sale

Posted at 16:17h in Cryptocurrency News by

A little-known Puerto Rico-based company has gone after Ripple in court, accusing the blockchain firm of running an unregistered securities sale of the XRP cryptocurrency.

The company, Bitcoin Manipulation Abatement (BMA), filed a lawsuit Friday in San Francisco, alleging both Ripple and its CEO, Brad Garlinghouse, had violated federal and Californian laws on seven counts when hosting its $1.1 billion XRP sale.

BMA accuses Ripple of publicly promoted the sale to investors to drive up demand and maximize profits, without registering the sale with the relevant regulator. It also claims the company purposefully misled investors with false announcements to “artificially inflate the price at which they can sell XRP.”

The plaintiff adds that XRP had no utility at the time of the first sale in 2013, with its sole value coming from being a speculative investment, and that the $1.1 billion Ripple made from the token sale was more than the rest of the company’s combined revenue and cash…

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