{"id":328533,"date":"2024-06-21T23:26:37","date_gmt":"2024-06-21T17:56:37","guid":{"rendered":"https:\/\/dripp.zone\/news\/ripple-clo-breaks-silence-on-new-xrp-security-lawsuit-crypto-news\/"},"modified":"2024-06-21T23:30:41","modified_gmt":"2024-06-21T18:00:41","slug":"ripple-clo-breaks-silence-on-new-xrp-security-lawsuit-crypto-news","status":"publish","type":"post","link":"https:\/\/dripp.zone\/news\/ripple-clo-breaks-silence-on-new-xrp-security-lawsuit-crypto-news\/","title":{"rendered":"Ripple CLO Breaks Silence On New XRP Security Lawsuit – Crypto News"},"content":{"rendered":"

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Stuart Alderoty<\/a>, Ripple CLO has broken the silence on a new XRP securities lawsuit causing a stir in the community. The legal veteran claims that the California judge who presided over a controversial Ripple case dismissed all allegations suggesting that the blockchain payment platform violated federal securities law.<\/p>\n

Lawsuit Against Ripple CEO Proceed to Trial\u00a0<\/strong><\/h2>\n

On Thursday, Judge Phyllis Hamilton of the U.S. District Court for the Northern District of California approved a new civil lawsuit against Ripple<\/a> to proceed to trial.<\/p>\n

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She partly denied the crypto firm\u2019s motion for summary judgment in a suit that accused Brad Garlinghouse<\/a> Ripple\u2019s CEO of violating state securities laws in 2017. Judge Hamilton aims to find out if Garlinghouse made \u201cmisleading statements\u201d that were connected with the sale of securities in a 2017 televised interview.<\/p>\n

However, the other four claims in the class action outlined in the securities lawsuit were dismissed by the judge. The tossed out claims includes the so-called \u201cfailure to register claims\u201d. To the decision of Judge Hamilton including the one individual state law claim that will proceed to trial, Alderoty noted that it will be dealt with at appropriately.<\/p>\n

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One state law claim, based on a 2017 statement, is going to trial. The plaintiff \u2014 who didn\u2019t buy directly from Ripple and can\u2019t say if he even heard the statement before he traded \u2014 allegedly lost a couple hundred $. We look forward to that cross examination. 2\/2<\/p>\n

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\u2014 Stuart Alderoty (@s_alderoty) June 21, 2024<\/a><\/p>\n<\/blockquote>\n

The allegations against Garlinghouse states that he violated California\u2019s securities laws by professing to be \u201cvery, very long XRP.\u201d At the same time, he was selling \u201cmillions of XRP on various cryptocurrency exchanges\u201d throughout 2017.<\/p>\n

On the other hand, Ripple\u2019s lawyers do not think that the claim should stand considering that XRP does not meet the definition of a security under the Howey Test. This aligns with Judge Analisa Torres July 13 ruling<\/a> that XRP did not meet all the criteria of the Howey Test when it was offered for sale directly to retail participants on crypto exchanges.<\/p>\n

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Fueled by this argument, the plaintiff\u2019s position \u201ccannot give rise to a claim for misleading statements in connection with a security,\u201d Ripple\u2019s lawyers said.<\/p>\n

Lawyers Disagree With Judge Torres\u2019s July 17 XRP Ruling<\/strong><\/h2>\n

While Torres\u2019 verdict at the time gave Ripple partial victory, it is worth noting that not many of her colleagues shared her stance<\/a>.<\/p>\n

Recall that District Judge Jed Rakoff, outrightly rejected the ruling in another case that was presented by the United States Securities and Exchange Commission (SEC) against Singaporean crypto firm Terraform Labs.<\/p>\n

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Judge Hamilton wrote \u201cAccordingly, the [court] cannot find as a matter of law that Ripple\u2019s conduct would not have led a reasonable investor to have an expectation of profit due to the efforts of others.\u201d<\/p>\n

Alderoty still reiterated that Judge Torres\u2019s ruling still stands undisturbed. He ultimately allayed all fears of wrongdoing, a statement that has now been corroborated by Ripple CEO Brad Garlinghouse.<\/p>\n

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As many have noticed \u2013 and some have already pointed out \u2013 there have been numerous misleading and some factually inaccurate headlines describing the decision made by a California judge yesterday in the class action lawsuit about XRP. (I\u2019m happy to see some correcting them \u2013 I\u2026<\/p>\n

\u2014 Brad Garlinghouse (@bgarlinghouse) June 21, 2024<\/a><\/p>\n<\/blockquote>\n

Read More: Bloomberg Analyst Predicts $1B Influx from VanEck Spot Bitcoin ETF on ASX<\/a><\/strong><\/p>\n

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Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture. Follow him on Twitter<\/a>, Linkedin<\/a> <\/p><\/div>\n<\/p><\/div>\n

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