Ripple Sued for Alleged Violations of US Securities Laws
A class action lawsuit has been filed against Ripple Labs, its CEO, and a subsidiary company. On the lawsuit, Coffey detailed in his filing that unlike other cryptocurrencies such as Bitcoin and Ethereum, the Ripple (XRP) supply was created out of thin air by Ripple Labs and citing that defendants "earned massive profits by quietly selling off XRP to the general public. Attorney James Taylor-Copeland representing Coffey filed the lawsuit with the Superior Court of the State of California, seeking damages on behalf of Coffey and all others similarly situated. The Coffey communications department stated:
"[The lawsuit] arises out of a scheme by defendants to raise hundreds of millions of dollars through the unregistered sale of XRP to retail investors in violation of the registration provisions of state and federal securities laws."
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