Ripple has to respond to the amended complaint that claims ‘XRP is a security’
Ripple has to respond to the amended complaint that claims ‘XRP is a security’

By CryptoTapas.com | Bitcoinz News | 13 Aug 2019

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Few days after we talked about a research report, Ripple has been slammed with an 'amended' complaint in both Federal and California courts.

The key difference between this complaint and the others is that this one needs a mandatory response from Ripple by mid-September.  The amended complaint draws its references to the SEC guidance on Analysis of Digital Assets.

The revised complaint also draws references to the California advertising law in stating that the investors were 'misled'.

In our opinion, Ripple/XRP has access to way too much money that gives them the endurance to withstand legal cases like these.   Even if it is proved that XRP is a security, we believe they will be able to get out of it with a fine. And with the kind of money they have access to, any amount of fine is not a big deal.

Crypto Research Report references Jason Bloomberg's comment from Forbes, which reads: “Look  more closely, however, and most such companies are ‘partners,’ not customers – and to make matters worse, Ripple pays companies to become partners.  Ripple calls this arrangement the RippleNet Accelerator Program.  Where, then, does the money for these rewards come from? “The RippleNet Accelerator Program is funded by $300 million of XRP from Ripple’s XRP holdings,” the post continues. In other words, Ripple is using its share of its free XRP tokens to build the illusion it has paying customers – when in fact Ripple is paying them, not the other way around.” - Jason Bloomberg, Forbes.com

The report further examines, "Former Chairman of the Commodities Future Trading Commission Gary Gensler explained that Ripple coin is a security according to the Howey Test64, and Ripple is facing their third security fraud court case in the United States."

It may be prudent for XRP community to start reviewing the facts of these cases and check it for themselves as to where XRP might end up at.  

No harm in due diligence.

 

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