Ripple Was Accused Of Deliberately Overestimation Of XRP Token Again
In California, another lawsuit has filed against the Ripple Labs, the CEO of Brad Garlinghouse and its financial services division XRP II LLC. Plaintiff David O'Connor needs to recognize the cryptocurrency XRP as a security.
O'Connor Accused The Company Of Violating The Securities Laws
"The mechanisms for managing and distributing the XRP cryptocurrency in order to increase its value show that it is a security."
David Okoner recalled that in May 2017 the company decided to limit the supply of cryptocurrency in the market and announced its intention to deposit 55 billion XRP tokens on the escrow account. Brad Garlingkhaus actively advertized this news that has significantly increased coin value.
"The price of XRP rose from approximately $ 0.22 per token on December 7, 2017 to $ 3.38 for the January 7, 2018 token," the plaintiff noted.
Note that O'Connors lawsuit was the third presented Ripple. So, in May, XRP investor Ryan Coffy filed a collective lawsuit, arguing that the company actually carried out an "infinite ICO", which should be classified as a sale of securities.
In June, Vladi Zakinov, appealed to the California court that Ripple did not register XRP before tokensale as security.
In turn, the company Ripple denies all charges, pointing out that the XRP token "does not meet the criteria of the security based on the historical definition in the law of the courts."