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- Ripple Labs gets filed in another lawsuit called the FCA lawsuit
- XRP has suffered a lot since the SEC lawsuit filed against it in the United States. A 68% decay was seen in the company’s market value
- XRP was delisted by major companies like Coinbase, Okchain etc.
Ripple Labs INC. finds itself in trouble once again. It is seen that a new lawsuit called the Florida class action lawsuit was filed against it by an investor of XRP. This lawsuit was filed on January 25, 2021.
Reason for the filing of the lawsuit
It was observed that Ripple Labs continued its exchange without ensuring proper security measures on its tokens. And the main reason for the filing of the lawsuit by Tyler Tommy was that the actions and exchanges performed by the firm were not registered into the Florida Office of Financial Regulation. It was also alleged that Ripple Labs has been making most of its investments by selling its assets. These activities increased the XRP firm’s revenue and most of its operations were carried out with this income.
To make this happen, XRP sold unlicensed tokens which were under security by the SEC lawsuit. This became the major point of filing the new action lawsuit.
XRP earlier was alleged for violating federal laws and was declared a security by the SEC in December 2020.
Tyler also alleged that despite XRP’s knowledge of itself being a security, it still continued to sell its crypto to investors. The XRP company was completely aware of it being a security and still made exchanges that would definitely cause a loss to the investors. The XRP firm made false statements about its identity misinterpreting its nature. This was another reason for Tyler filing a case against XRP.
Present position of XRP in the market
XRP seems to have lost most of its popularity since the SEC lawsuit of the United States. Since then it has dropped from the no. 3 position in the crypto market to below 20th position. It did not even make it into the top 10 important crypto currencies in the market. Major firms like Coinbase, Blockchain.com, Okcoin etc have delisted XRP from them. XRP price dropped almost by 68% during the SEC lawsuit. Now XRP has another lawsuit filed against it and that being a bit serious one. Already XRP, of its lowest market value, has seen a decay of 2% more in the last 24 hours. Presently it has a market value of $0.256 and considering the present aspects that XRP would experience, it is likely that XRP’s value would still decay.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
