Ripple Avoids XRP Question as It Moves to Dismiss Securities Lawsuit

Published at: Sept. 20, 2019

Blockchain network Ripple has filed a motion to dismiss a lawsuit accusing the firm of selling unregistered securities.

Ripple: Securities ruling beyond scope of the court

In a court filing uploaded by Fortune on Sept. 20, lawyers representing the company against investor Bradley Sostack contested the claims.

Part of an ongoing legal battle, Sostack says Ripple’s sales of XRP in 2013 constituted an unlawful securities offering.

Ripple denies this, but the case has thrown up wider concerns over the legality of Ripple’s operations regarding XRP. As Cointelegraph reported, executives have refused to acknowledge the company’s relationship to the token, despite their substantial personal holdings and continuing sell-offs.

“Court need not resolve whether XRP is a security”

That tension is now resurfacing after the lawyers’ motion to dismiss failed to address the securities aspect of XRP at all.

“Because of the multiple, independent grounds for dismissing this action, the Court need not resolve whether XRP is a security or currency for purposes of this Motion, which assumes Plaintiff’s allegation that XRP is a security,” a section reads.

The substance of the filing attracted attention from crypto-focused lawyer Jake Chervinsky.

“They make twelve separate arguments for dismissal of the plaintiff's claims. Not a single one squarely addresses whether XRP is an unregistered security,” he summarized on Twitter on Friday.

The latest developments appeared to have little impact on XRP markets — with the token continuing to trade flat over the past 24 hours at just under $0.30.

Tags
Altcoin
Ripple
Court
Related Posts
Court denies SEC access to Ripple’s legal advice
Ripple has scored another win in its ongoing legal battle against the United States Securities and Exchange Commission as the court has denied the SEC access to Ripple’s legal advice. Magistrate Judge Sarah Netburn of the District Court for the Southern District of New York ruled Sunday to deny the SEC’s motion to compel Ripple to produce memos discussing XRP sales with the firm’s lawyers. According to the SEC, Ripple could have been aware that XRP could be a security from its legal advisors before moving forward with its token sale back in 2013. The SEC filed a motion on …
Regulation / May 31, 2021
SEC Is Bringing ‘Thor’s Hammer’ Against Ripple, Warns Tone Vays
Ripple is coming under fire from a serial Bitcoin (BTC) proponent this week after news emerged a lawsuit against the company has intensified. Ripple will feel U.S. regulators’ wrath, says Vays Ripple, which notionally controls the token known as XRP, is currently being taken to court by an investor, Bradley Sostack, who claims the company engaged in selling unregistered securities. As Cointelegraph reported, the stakes increased this week, after Sostack amended his original claim to include fresh guidance from the United States Securities and Exchange Commission (SEC). According to reports, the SEC’s latest pronouncements lend weight to Sostack’s argument, and …
Bitcoin / Aug. 14, 2019
Securities Lawsuit Against Ripple to Stay in Federal Court
An ongoing securities lawsuit against payment startup Ripple will stay in federal court, per a recent ruling. The news was announced by lawyer Jake Chervinsky in a tweet on Mar. 1. “The Court has denied the plaintiffs' motions to remand. This means the case stays in federal court, a minor but meaningful victory for Ripple,” Chervinsky wrote in the post. The ruling reads that United States District Judge Phyllis J. Hamilton, of the Northern District of California, has ordered that the class action suit against Ripple Labs, its subsidiary XRP II, and Ripple CEO Brad Garlinghouse, for the sale of …
United States / March 1, 2019
XRP price breaks out of range with a 25% rally, but why?
Crypto markets are flashing a bit of green on Sept. 22 as Bitcoin (BTC) price tacked on a 4.7% gain to trade above $19,300 and Ether (ETH) surged 6.5% to recapture the $1,300 level. RSR and and Astar Network (ASTAR) also surged by 23% and 17% respectively, but the more notable mover of the day was XRP. Currently, XRP price reflects a near 25% gain and the asset is up 41% in the past month. According to defense lawyer, James K. Filan, on Sept. 18 Ripple Labs filed a motion for summary judgement - a legal process which involves the …
Regulation / Sept. 22, 2022
Investors increasingly confident of Ripple's victory over SEC: CoinShares
Recent developments in the Ripple vs Securities and Exchange Commission (SEC) case appear to have bolstered investor confidence in XRP-tied investment products, according to investment data from CoinShares’ head of research James Butterfill. In its latest Digital Asset Fund Flows published on Nov. 7, Butterfill noted that XRP investment products have seen a third consecutive week of institutional inflows, clocking $1.1 million. Butterfill said the figures imply "improving investor confidence as the SEC case against Ripple looks increasingly fragile." The last few weeks have seen Ripple Labs gaining increasing support from heavy hitters in the crypto industry including Coinbase and …
Sec / Nov. 8, 2022