Facing the US SEC’s lawsuit, Ripple is now accused of violating securities laws in Florida.
The blame is serious
Ripple Labs, a company behind the Ripple payment protocol and XRP-based products, faces another lawsuit claiming that the firm violated securities laws in the United States.
According to a January 25 case file, Florida-based XRP investor Tyler Toomey filed a civil suit against Ripple Labs and Ripple CEO Brad Garlinghouse. The case alleges that the defendants failed to comply with Florida securities laws by not registering with the Florida Financial Regulatory Office.
Toomey stated that Ripple Labs and Garlinghouse are facing a similar lawsuit reportedly in violation of federal securities laws. The $ 1.35 billion lawsuit was filed by the US Securities and Exchange Commission on December 22, 2021.
The new lawsuit accuses Ripple of selling millions of dollars of unlicensed XRP tokens and generating massive revenue from those sales, saying: “The majority of Ripple’s revenue came from XRP sales (over $ 1 billion) and Ripple financed its operations through sales.”
The plaintiff also claimed that Ripple made false statements about XRP, claiming that the token should not be classified as a security. Toomey argued that the defendants knew that XRP was indeed a security:
“Defendants made false statements and / or negligence regarding the material facts of the true nature of XRP. Specifically, Defendants knew that XRP was actually a security, but they misrepresented XRP by stating to investors that it was not a security. Before defendants sold XRP to the market, they knew that XRP was a security. “
According to the rules of the Federal Code of Civil Procedure, Toomey requested that all matters raised in the case be judged by a jury.
Shortly after the SEC took action against Ripple in late 2020, several crypto companies such as Coinbase and Binance removed XRP from their platforms. XRP is trading at $ 0.26.