Ripple XRP

XRP security lawsuit moving forward

The lawsuit between investor Vladi Zakinov and Ripple Labs is still ongoing. The main issue at hand is the plaintiffs accusing Ripple of not having registered XRP as a security before the token sale. The plaintiff had purchased 129,000XRP in January 2018 and incurred a $189,600 loss a short while later by converting to other cryptocurrencies.

Last month, the defendant Ripple, filed a motion to dismiss the case based on technicalities as they consider the matter of XRP not being a security as handled as even the U.S. Departments of Justice and Treasury had recognized XRP as a “convertible virtual currency” in 2015. Additionally, the UK’s financial watchdog, the FCA had also deemed XRP to not be a security.

On February 26th, Judge Phyllis Hamilton of the Court of the Northern District of California granted part of Ripple’s motion to dismiss and denied a part. The granted part were four documents to be taken by the court on judicial notice: a statement of facts from the federal government’s 2015 settlement with defendants Ripple Labs and defendant Ripple XRP II,  the “Ripple Credits” page from Wiki, Q1 2018 XRP market report and an article titled “Ripple is sitting on close to $80 billion and could cash out hundreds of millions per month—but it isn’t”.

The case will be moving forward and we are yet to find out what the US justice system will rule. Many have misconceptions about the history of XRP and Ripple and the “XRP is a security” issue has been around for a long time now. This lawsuit may bring the end of that discussion.

Image Licensed via Shutterstock

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