1 August 2026
Ripple Charged For Violating US Securities Laws
A lawsuit has been filed against Ripple Labs, CEO, and subsidiary. As per the accusations made the Ripple has violated the securities laws of state and federal by bringing the scheme of raising hundreds of millions of dollars through the sale of unregistered ripple tokens (XRP).
A person from the company named Bitcoin Manipulation Abatement LLC has filed a case against Ripple in U.S. federal district court stating that Ripple has misled investors and sold XRP as unregistered security in violation of federal law.
The court documents filed on 1st May reads,
“...in order to drive demand for and thereby increase profits from the sale of XRP, Defendants have made a litany of false and misleading statements regarding XRP in violation of California’s securities laws, and false advertising and unfair competition laws.”
Bitcoin Manipulation Abatement LLC wants to “recover damages” and “obtain other relief” regarding the alleged violations.
Back in November 2019, the same firm had a lawsuit of $150 million against crypto exchange FTX but was dismissed one month later. Binance CEO, Changpeng Zhao shared his views regarding the lawsuit, calling them “very far fetched”.
Ripple has faced many legal actions but still holds the third position for XRP token in the market cap. A class-action lawsuit was initiated in May 2018 and being moved forward by attorneys for XRP investor Bradley Sostack has similar allegations of deceiving investors and violating securities laws.
However, Sostack does seek damages and compensation for legal costs, one of his stated goals was the recognition of XRP as a security. According to the amendment filed on March 25 states that he was hedging his bets on the possibility the court may not acknowledge it as such. Although, the U.S. Securities and Exchange Commission (SEC) has not taken action on the matter.
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