The complaint accuses Ripple Labs of touting optimistic price forecasts, of blurring the line between corporate clients and actual XRP adoption.
Lead plaintiff Bradley Coffey states that he purchased 650 XRP on 6 January 2018 at $2.60 per token. He liquidated the entire position on 18 January – receiving 1,105 USDT. The trades produced a net loss of $551.
The suit seeks damages for every investor who acquired XRP from January 2013 onward. The Securities but also Exchange Commission has opened investigations into multiple initial coin offerings to test whether the sales constitute unregistered securities. Former Commodity Futures Trading Commission chair Gary Gensler told reporters that XRP resembles a non compliant security because Ripple controls the token supply. Ripple executives counter that XRP escapes such classification and add that no summons has reached their San Francisco office.
Cryptocurrency and initial coin offering investments carry high risk and extreme volatility. This article does not constitute investment advice. Consult a licensed financial professional before committing capital. The author held bitcoin besides XRP at the time of publication.