Blockchain company Ripple has just been hit with a new class-action lawsuit. US citizen Tyler Toomey has accused the firm and its CEO Brad Garlinghouse of violating Florida securities laws.
The lawsuit was filed on January 25. According to it, the company has sold millions of dollars or more in unregistered tokens and used the proceeds to conduct business. According to Toomey, Ripple falsely claimed XRP was not a security, even though it knew it actually was. According to the case file:
"The overwhelming majority of Ripple’s revenue came from its sales of XRP (over $1 billion), and Ripple relied on those sales to fund its operations. Defendants knew that XRP was in fact a security, but affirmatively misrepresented to investors that it was not a security."
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The US authorities filed charges in December against the blockchain startup for selling $1.3B in unregistered securities through XRP tokens.