Court consolidated of lawsuits Bradley Sostack and Bitcoin Manipulation Abatement LLC against Ripple Labs

The U.S. District Court for the Northern District of California consolidated the cases of Bradley Sostack and Bitcoin Manipulation Abatement LLC against Ripple Labs.

On May 28, the court ruled that the two cases would be related and merged into one, thereby giving the joint movement of Ripple and Sostack.

According to the court, BMA did not submit an official response to the motion and the judge made this decision because:

  • Both actions concerned substantially the same parties
  • Both actions concerned substantially the same property and events and
  • Relating these actions would avoid duplicative litigation and inconsistent results

Ripple lawsuits: Court approves consolidation request

Whether XRP is a security within the meaning of U.S. law is a matter of concern not only for the U.S. Securities and Exchange Commission (SEC) and investors but also for various courts for several years. It started more than two years ago when Ryan Coffey filed the first lawsuit against Ripple, claiming that XRP is unregistered security. This claim was dismissed, but numerous other lawsuits emerged afterward.

Until a few months ago, there was only a class-action lawsuit, which has been pending in the state of California since November 2018 and is led by lead plaintiff Bradley Sostack. However, two new lawsuits have emerged in 2020. In March, the Simmons vs. Ripple Labs Inc. trial began in the state of New York, while in May Bitcoin Manipulation Abatement LLC filed a lawsuit against Ripple Labs Inc. also in California.

court-consolidated-of-lawsuits-bradley-sostack-and-bitcoin-manipulation-abatement-llc-against-ripple-labs

Ripple and Bradley Sostack argued that proceeding the two cases before different Judges would be inefficient, unduly burdensome, and duplicative. Relating the cases would serve the interests of justice and further judicial economy.

The BMA attorney Pavel Pogodin was contacted to agree on the consolidation of the two cases but was hesitant to stipulate.

Pogodin stated:

“It will be the judge’s decision if the cases are related enough to warrant consolidation. Again, without seeing a single case where it was done, I’m unwilling to stipulate.”

Independently of this, Judge Phyllis J. Hamilton of the U.S. District Court for the Northern District of California granted the motion now, as the merging of the cases would save time and money and avoid conflicting results. The judge stated in her decision that the two lawsuits concern primarily the same property and events and the same parties.

The judge also partially discredited Pogodin’s claim and stated:

“Based on errant typos in its complaint, it appears that plaintiff BMA literally copied, pasted (without formatting), and then deleted numerous footnotes some of the CFAC’s allegations.”

The judge even noted that:

“Based on errant typos in its complaint, it appears that plaintiff BMA literally copied, pasted (without formatting), and then deleted numerous footnotes some of the CFAC’s allegations.”

XRP liquidity index broke a new record in Mexico’s largest crypto exchange Bitso

Liquidity in the market refers to how a digital asset can be converted into cash or changed for other cryptocurrencies without affecting its stability.

According to the Liquidity Index Bot on Twitter, the XRP/MXN liquidity index in Bitso has been steadily increasing for the past four days. While it was 32.962.643 on May 27, it increased to 35.168.346 on May 28, to 36.023.811 on May 29 and to 36.795.339 on May 30.

XRP now processes 2.5% of all remittances from the US to Mexico. Meanwhile, the cryptocurrency exchange Bitso has seen a huge increase in transfer volumes since it partnered with Ripple to facilitate faster and cheaper cross-border payments, according to the firm’s head of finance Bárbara González Briseño.

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