An American technology company that develops the Ripple payment protocol and exchange network Ripple Labs has failed to dismiss the class-action lawsuit, which, according to the company, could bring down the global virtual currency market XRP by half a trillion dollars, Bloomberg reports.
A federal judge in Auckland, California, narrowed Ripple's claims but left the complaint mostly to investors accusing the company of selling unregistered securities.
The judge did not agree with Ripple's argument that the trial was not timely since it was filed more than five years after the XRP was proposed in 2013.
Ripple said in a November lawsuit that if the case goes forward, "it would upend and threaten to destroy the established XRP market more broadly — a market involving over $500 billion in trading over the last two years."
The victims claimed they lost money after selling their XRP tokens because they were misled into buying unregistered securities.
Chart of the XRP/USD{follow}trading pair from EXANTE
At press time, XRP/USD has dropped by 7.49% is trading at the $0.23 mark.
Earlier iHodl reported that Ripple invested $11.3 million in MoneyGram during the last two quarters of 2019.
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