Ripple company faces one more suit

Posted 05 July, 2018

The cryptocurrency company Ripple Labs along with its financial service division XRP II LLC face one more suit in California. The complaint was filled by David Oconer citing a violation of the California law.

The plaintiff stated that the company violated the securities law of California:

"The XRP offered and sold by defendants had all traditional hallmarks of a security, yen defendants failed to register them as such," the complaint reads, "Unlike cryptocurrencies, like Bitcoin and Ethereum, which are mined...on the networks, Ripple created the 100 billion XRP supply itself."

Moreover, Oconer also added that Ripple company restrained offers of the coin citing intentions to deposit 55 billion XRP to an escrow account. Specifically, the company CEO widely announced these plans which naturally boosted the price.

"The price of XRP rapidly increased, from approximately $0.22 per token on December 7, 2017, to $3.38 per token on January 7. 2018," according to the complaint.

Notably, this complaint is the third one made against Ripple company. For reference, one of the investors lodged a class action in May citing that the company held neverending ICO that should be classified as securities sale.

Following that case, in June California court received the second complaint under which the company was said to fail to register XRP before the sale.

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