Ripple Hit With Suit Claiming Its XRP Asset Is A Security

Law360 (May 4, 2020, 3:40 PM EDT) — Ripple Labs Inc. faces a new federal lawsuit in California accusing the fintech company of harming purchasers of its digital asset XRP by opting not to register XRP as a security and misrepresenting details of XRP’s structure to prospective purchasers.

The suit was filed Friday by an entity called Bitcoin Manipulation Abatement LLC, which alleges that Ripple, its chief executive Bradley Garlinghouse and XRP II LLC violated federal and California state law by offering and selling unregistered securities.

The plaintiff entity also claimed that Ripple violated California’s laws against false advertising and unfair competition and sought damages for alleged losses it…

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