February 27, 2024

Investors accused CEO of Ripple dumping XRP

Investors accused CEO of Ripple dumping XRP

A recently filed class action lawsuit accuses Ripple CEO Brad Garlinghouse of secretly selling 67,000,000 XRP whileactive promotion of cryptocurrency.

Last week to 2018 class action lawsuitIn the year of the violation of the US Securities Act, the initial offering of XRP coins added a complaint accusing Garlinghouse of false advertising and misleading investors.

XRP register data shows that Garlinghousesold at least 67 million XRP in 2017 and sold all coins received from Ripple within a few days of receipt. At the same time, the CEO claimed that he was storing coins in anticipation of an increase in their exchange rate.

However, Garlinghouse was not an “XRP holder” and did not hold coins for long-term gain, but dumped XRP on retail investors in exchange for dollars and other cryptocurrencies.

If investors knew the truth about XRP salesGarlinghouse, this would significantly change their investment behavior. Accordingly, Garlinghouse's statements are seen as “distorting and concealing material facts to investors.”

Additionally, Ripple and Brad Garlinghouse are accusedin deliberately distorting the concept of XRP and presenting the coin as an “intermediate currency.” The lawsuit states that this policy was chosen to avoid classifying the coin as a security.