January 24, 2021

November 4 - Deadline for filing a case against Ripple

November 4 - Deadline for filing a case against Ripple

On November 4, before the end of the working day, plaintiff Barry Sostack must file an application in response to a request from lawyers Ripple startup blockchain to terminate litigation against the company. If the case against Ripple is not closed, it is unlikely that the court will reach a verdict in 2019.

Sostack claims XRP is valuablepaper, so Ripple sold the digital asset illegally, as it was not registered as an issuer with the US Securities and Exchange Commission. The lawyers of the company believe that the court should refuse Barry to consider the application, as:

  1. the statute of limitations has expired;
  2. the plaintiff did not provide evidence that he bought XRP from Ripple.

According to the current legislation,the victim must apply to the court within three years from the date of the transaction. ICO XRP was held in 2013, in connection with this, the deadline for filing a lawsuit against the company has long expired. In addition, Sostack purchased coins from third parties on the cryptocurrency exchange in 2018 and therefore cannot claim Ripple.

According to attorney Paul Godfrey, representativesRipple chose the right tactic: they dispute the fact that the lawsuit was filed, not the status of a digital asset. If the company said that XRP is a currency, not a security, then it would have to conduct an analysis and provide evidence. Anderson Kill employee Stephen Palley believes that the same asset can be both a currency and a security. As a result, experts can assign dual status to XRP.

Palley Suggests Against Ripple Will Continuefile lawsuits even if the startup can remove the charges brought by Sostack. Unlike many other crypto companies, Ripple has financial assets, so, theoretically, XRP owners can sue a large sum of money from the company. According to Stephen, potential victims will accuse Ripple of violating the law governing the circulation of securities. At the current stage, they are trying to convict the company of illegal trade in XRP tokens, in the future Ripple may be charged with fraud.