In a recent filing, Ripple Labs, a San Francisco-based blockchain giant, implemented a last effort to defend its XRP from security concerns before a court on Jan 15. Ripple insists XRP is clearly not security, further, the company also claimed that the case was brought to the court way too late.
This Wednesday, the court hearing on the XRP securities lawsuit is scheduled to take place, and Phyllis J. Hamilton, the chief district judge of the U.S. District Court for the Northern District of California, is expected to approve or deny the final motion of Ripple to toss the suit.
$xrp Wednesday Jan 15 motion to dismiss ???? pic.twitter.com/jO85QAWFrN
— Sir Gordon Gekko ?? (@gordongekko369) January 12, 2020
Details about the XRP security lawsuit
Ripple’s involvement with the US District Court has continued for quite some time. However, things heated up from September 2019 when Bradley Sostack was assigned as a lead plaintiff in the case.
Sostack’s initial complaint was filed in August, according to that he alleged Ripple had sold XRP – supposedly unregistered security – to retail investors. For more clearly, He took Ripple to court overrunning “a never-ending ICO” from 2013 to 2015 and selling unregistered securities to its investors.
Recently, David Schwartz, Ripple CTO, denied that Ripple ran an ICO, claiming that the company was funded by venture capitalists and angel investors, and none of XRP buyers wanted to give the company money.
Moreover, Ripple’s recent filing is primarily included previous arguments made in an attempt to get the case thrown out. Ripple said that Sostack’s complaint filed in August missed any related deadlines; Ripple’s initial offering, which featured the sales of XRP, began in 2013. Since Sostack’s amended filing came after a three-year statute of repose, making Ripple stated that it bears no weight:
“XRP is not a security, but that is irrelevant for purposes of this motion. Even if XRP were security, the Plaintiff’s claims still fail as a matter of law”.
As AZCoin News just reported, Brad Garlinghouse, CEO of Ripple Labs, confirmed that XRP is not a security. He strongly defended Ripple’s integrity, claiming that the company has nothing to answer.
Brad Garlinghouse: XRP Is Not A Security pic.twitter.com/2MERDPdVnA
— Tiger Thông (@tigerthong1102) January 13, 2020
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