Payment processor and XRP issuer Ripple is facing yet another litigation shock in Florida on Monday, months after US regulators ceased the firm’s business operations.
He was taken to court by someone who claimed to have invested a relatively small amount of $ 100 in XRP last year – losing 50% in the following weeks.
Investor Tyler Toomey said he bought 135 XRP in November last year as prices soared. He then sold his assets in December and lost $ 48.50 on his initial capital.
However, this loss was enough to provoke Toomey. He claimed that Ripple had illegally sold millions of dollars’ worth of XRP tokens to other Florida residents, and that the firm’s founders had illegally profited from the sales, in a class action filed on behalf of him and other similar investors.
The subject of the lawsuit was “Defendants [Ripple] selling millions of dollars (or more) of XRP tokens, which are securities under Florida law, to Florida investors without registering the same with federal or Florida authorities,
On behalf of other XRP investors in Florida, Toomey decided to seek justice after suffering damage.
The lawsuit included holding Ripple, co-founder Chris Larsen, CEO Brad Garlinghouse, and several other anonymous members of the founding team liable for violating local and national investor actions, as well as public misrepresentation of the nature of their tokens and “unjust enrichment.” Includes claims.
The claims are similar to the claims made by the US Securities and Exchange Commission in 2020. The regulator claims that Ripple’s two co-founders, Brad Garlinghouse and Chris Larsen, have earned over $ 600 million. But despite the founders who have kept the distance between Ripple and XRP, some company executives previously admitted that there was a close connection months before the problems with SEC issues began.
“The creators of XRP are pretty much the same as the people who created Ripple, and among other things, they originally set up Ripple to distribute XRP,” said Ripple CTO David Schwartz in a tweet. No direct name was given in any of the SEC or Toomley cases.
Meanwhile, Garlinghouse has remained calm until now. Earlier this month, he added to Twitter that the SEC has falsely claimed its company and itself, and Ripple is preparing its own legal proceedings.