Welcome to Extreme Investor Network, where we provide you with the latest news and updates on all things related to the stock market, trading, and Wall Street. Today, we have some interesting developments to share regarding Ripple and the ongoing legal battle surrounding its cryptocurrency, XRP.
Recent court rulings have brought conflicting outcomes for Ripple in the United States. While a New York court found that Ripple breached US securities laws by selling XRP to institutional investors, a separate court dismissed similar allegations. Judge Analisa Torres ruled in July 2023 that Ripple did, in fact, breach US securities laws, and the company now awaits the court’s decision on the penalty it must pay for this violation.
However, the legal saga doesn’t end there. A claim under California state law, focusing on misleading statements related to the offer or sale of securities, is set to go to trial. The claim is based on a 2017 statement from Ripple CEO Brad Garlinghouse, where he expressed his bullishness on XRP. The plaintiff argues that this statement was false, pointing to Garlinghouse’s sale of millions of XRP on various cryptocurrency exchanges in the same year.
The plaintiff further alleges that the statement and promotional materials used by Ripple meet the criteria of the Howey test, specifically the expectation of profits derived from the efforts of others. The upcoming trial will ultimately determine the outcome of this claim.
As the legal battle continues to unfold, investors and enthusiasts in the cryptocurrency space are closely monitoring these developments. Stay tuned to Extreme Investor Network for the latest updates and analysis on this case and other key events impacting the financial markets. Trust us to provide you with valuable insights and unique perspectives that set us apart from the rest. Happy investing!