In a recent update on an XRP lawsuit, Ripple CEO Brad Garlinghouse was accused of misleading statements in 2017. In his decision, US Federal Court Judge Phillis Hamilton chose to greenlight a civil lawsuit from securities against the company.

The lawsuit alleges that Garlinghouse broke California security laws. Therefore, it will be up to a jury to decide whether Garlinghouse made misleading statements during an interview conducted in 2017. Ripple is being accused of four charges that deal with the failure to register XRP as a security.

Specifically, the central point of the process refers to a statement by the CEO in an interview with Canada’s BNN Bloomberg in 2017, in which Garlinghouse stated that he was “very, very long” in XRP. However, the lawsuit argues that the statement was false, as the executive had sold millions of XRP throughout the year.

In its argument, Ripple highlighted that the allegation of ‘misleading statement’ should be discarded in the process, based on the decision of judge Analisa Torres in the SEC vs Ripple case, last year, in which she stated that XRP is not a security under the Howey Test. However, Magistrate Phillis Hamilton did not agree with the claim, pointing out that Ripple’s native token could be a security when sold to non-institutional investors.

In one part of the proceedings, Hamilton stated:

“The court refuses to consider, as a matter of law, that a reasonable investor would have derived any expectation of profit from general trends in the cryptocurrency market, as opposed to Ripple’s efforts to facilitate the use of XRP in cross-border payments, among others. things”.

At the time of publication, the price of XRP was quoted at US$0.4889 with an increase of 1.2% in the last 24 hours.


The views and opinions expressed by the author, or anyone mentioned in this article, are for informational purposes only and do not constitute financial, investment or other advice. Investing or trading cryptocurrencies carries a risk of financial loss.


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