Bitcoin Manipulation Abatement LLC has filed a lawsuit against Ripple in a US federal district court accusing the company of misleading investors and selling XRP tokens as unregistered securities.
According to the lawsuit documents, which was filed in May 1 against Ripple and its CEO Brad Garlinghouse, Ripple allegedly violated federal securities law by raising more than $1M by marketing and selling XRP tokens as unregistered securities:
"... in order to drive demand for and thereby increase profits from the sale of XRP, Defendants have made a litany of false and misleading statements regarding XRP in violation of California’s securities laws, and false advertising and unfair competition laws."
Bitcoin Manipulation Abatement LLC seeks to "recover damages" and "obtain other relief" related to the violations the company and its CEO are accused of.
The same company filed in November 2019 another $150M lawsuit against the crypto derivatives exchange FTX. However, the lawsuit was dismissed by the court.
This is not the first lawsuit Ripple filed against Ripple. Thus, in May 2018 the company faced a class action lawsuit filed by the lawyers of Bradley Sostack, an investor in XRP. No decision has yet been made by the courts.
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