- Ripple proponent attorney John Deaton has informed XRP holders of an ongoing class action lawsuit hearing.
- Plaintiff Bradley Sostak has vied for the lead position in the class action lawsuit.
- XRP holders have alleged securities law violations and have taken legal action against Ripple.
In a recent update, attorney John Deaton, a prominent advocate of Ripple, has informed the XRP community about an ongoing class action lawsuit against the payment giant in Federal Court. The case, known as Zakinov v. Ripple, has been filed by XRP holders who have either held onto the token or sold it at a loss, alleging that the company has violated securities laws.
One of the plaintiffs in this class action, Bradley Sostak, has sought to be the lead plaintiff and has urged the court to create a class of all XRP holders who have purchased, held, or sold XRP tokens at a loss.
Interestingly, this list of XRP holders includes a significant number of participants, totaling 75,890, who are siding with Ripple in its argument against the U.S. financial regulator, the Securities and Exchange Commission (SEC).
XRP Holders’ Fate Hangs in Balance of SEC vs. Ripple Case
This group supports Ripple’s defense that XRP should not be classified as a security. The outcome of this hearing is of great significance to XRP holders, as it is not limited to the direct sales of Ripple. It also encompasses secondary and international sales, including in jurisdictions where XRP is considered a “non-security.”
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Both the group of XRP holders who have sided with Ripple in its lawsuit against the SEC and the group that has filed the class action lawsuit against Ripple are closely watching the proceedings. The court’s ruling in this matter is expected to have a far-reaching impact on both groups and the broader community of XRP holders.
The lawsuit shares similarities with the SEC’s litigation against Ripple. Therefore, the judge’s decision on whether the company should be held accountable for its sales of XRP tokens, whether deemed a security or a non-security, could significantly influence the asset’s price and the sentiment of its holders.
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The lawsuit is expected to continue for several weeks or even months before resolving, as opined by Huber, a member of the XRP community.
On the Flipside
- Ripple has faced numerous legal challenges in recent years, including ongoing litigation with the U.S. Securities and Exchange Commission.
- The outcome of the class action lawsuit against Ripple is still pending, and whether the court will ultimately rule in favor of the plaintiffs remains to be seen.
- Ripple has many supporters who believe that XRP is not a security and that the SEC has unfairly targeted the company. These supporters may continue to advocate for Ripple’s position in the ongoing legal battles.
Why You Should Care
The court’s ruling on whether Ripple should be held accountable for its sales of XRP tokens, whether classified as a security or a non-security, could directly impact the price of XRP and the sentiment of its holders.
FAQs
Ripple is facing a class action lawsuit filed by XRP holders who alleged that Ripple violated securities laws. The case has been filed because XRP is a security, and Ripple has unlawfully sold it as such.
The XRP lawsuit is ongoing. While the recent hearing in Federal Court is a significant step in the legal proceedings, the lawsuit will likely continue for several weeks or even months before reaching a resolution.
It is difficult to estimate the exact number of XRP holders, but reports suggest there are millions worldwide. In the recent class action lawsuit, over 75,000 XRP holders have sided with Ripple in its argument against the SEC, while others have filed the class action against Ripple.
It is impossible to predict the future of any cryptocurrency, including XRP, with certainty. However, many analysts and experts believe that XRP has a promising future due to its potential use in cross-border payments and remittances and its partnership with various financial institutions. The outcome of the ongoing legal proceedings against Ripple will likely significantly impact the future of XRP.
To learn more about the Financial Conduct Authority’s efforts to collaborate with crypto firms for building regulations, read here:
Ripple-Friendly FCA Aims to Work with Crypto Firms to Build Regulations
To stay updated on the latest developments regarding Ripple’s legal battle with the SEC and the possibility of the company leaving the U.S., click here:
Ripple’s CEO Drops Hints: Moving Away from the US Like Coinbase?
