Ripple to face court for unregistered securities trading

Ripple Labs Inc. will have to answer to the Superior Court of the State of California on the matter of XRP tokens, widely known as Ripple cryptocurrency.

The plaintiff, Ryan Coffey, has filed an action against the corporation after he lost a considerable sum of money by making a clearly unsuccessful investment. Reports tell that he had bought 650 XRP for over two dollars each in January and sold them for $1.70 at the end of the same month. The investor also deems strange how the corporation produced all tokens at once, while Bitcoin and Ethereum have a more explainable source - mining.

Investor insists that the true intentions of Ripple Labs were fraudulent from the start and reminds about the United States Securities and Exchange Commission view on tokens. Ripple Labs has previously refuted similar allegations and this means that they would present a formed set of counterarguments in court.

The recent price motion of Ripple has been positive, as the prominent Binance exchange has added the trading pair of XRP/USDT to their lists. The local maximum was $0.92, but the third most capitalized cryptocurrency has not managed to overcome the barrier of $1. At the press time, it costs $0.819379, losing several percents in the last 24 hours.

Image courtesy of John Gibbins / San Diego Union-Tribune