Lawyers for Brad Garlinghouse haven’t argued the Ripple CEO’s statements in extolling XRP were true

According to court records obtained from Law360, attorney for Ripple and CEO Brad Garlinghouse in a federal lawsuit against Ripple Labs said that any statements they made overstating the utility of the XRP token can’t be proven false.

Lawyers for Brad Garlinghouse haven’t argued the Ripple CEO’s statements in extolling XRP were true

The legal team believes that:

“The plaintiff and XRP investor Bradley Sostack is unable to prove that Ripple misled investors with bullish claims about XRP and sold the token as an unregistered security. Sostack’s statements are unsupported leaps of logic. In short, the plaintiff fails to offer the factual allegations needed to show that Ripple’s and Garlinghouse’s statements were false when made. ”

Sostack’s lawyers have used the following argument:

“XRP has no utility at all.”

Something Ripple’s legal team should have been raised in the initial lawsuit against the firm.

The original lawsuit against the cryptocurrency company began in August 2019, when Sostack’s lawyers filed a lawsuit with Ripple claiming it had sold its XRP as an unregistered security.

The case was revised in March to include a complaint alleging Garlinghouse offered XRP to potential investors while silently paying 67 million tokens from his holdings. The lawsuit has stated that Ripple has deliberately overstated the practical utility of cryptocurrencies as a “bridging currency” to facilitate international payments.

According to records, the lawyers claim that Sostack was unable to explain why any false allegations made by Ripple or Garlinghouse are wrong.

Records clearly state:

“Plaintiff offers no reason and pleads no facts regarding how Mr. Garlinghouse’s statement could confuse the public if it is true.”

In addition to Sostack’s case, a company called Bitcoin Manipulation Abatement filed a lawsuit with the U.S. federal district court in May, accusing Ripple of similar allegations: misleading investors by selling XRP as an unregistered security.

Thirty new whales are gobbling up XRP in a sign some big investors are rethinking the cryptocurrency

The number of accounts holding more than one million XRP has increased by 3.7% with 30 new whales appearing over the last two weeks, according to Santiment’s holder distribution chart.


XRP Holder Distribution vs. Price | Source: Santiment

These investors now hold between $240,000 and $2.4 million in XRP each, which has contributed to upwards pressure on price. After a fairly uninspiring few months, XRP has seen a price rise of over 30% from $0.19 to $0.25 in a fortnight. At least 30 big investors with deep pockets believe the price rise is set to continue.

Read more:

Follow us on Telegram

Follow us on Twitter

Follow us on Facebook

You might also like