New lawsuit filed against Ripple and Brad Garlinghouse

by in Cryptocurrency News

Ripple court

A lawsuit has been filed against Ripple and Brad Garlinghouse. They are accused of violating US securities laws. It is reported by Cointelegraph.

Related: Head of Ripple predicted disappearance of 99% of cryptocoins

The lawsuit has been filed by Bitcoin Manipulation Abatement LLC with the U.S. Federal District Court. According to documents, Ripple and its CEO are accused of selling unregistered securities worth more than a billion dollars. Defendants made many false and misleading statements regarding XRP, which violated California securities laws.

Ripple was also accused of violating advertising laws. According to the plaintiff, investors were deceived in order to increase demand for XRP, as well as increase profits from the sale of cryptocurrencies.

Through a lawsuit, Bitcoin Manipulation Abatement LLC intends to “compensate for the damage” caused to XRP investors. What losses the plaintiff suffered is not specified.

It is possible that judicial “trolls” are hiding behind a legal entity. In November 2019, the same company sued the FTX crypto derivatives exchange. The plaintiff intended to sue the platform for $150 million, but a month later withdrew his lawsuit.

Earlier, a court refused to convict Ripple of violating advertising laws.