US Securities Law Violation Filed Against Ripple

Bitcoin Manipulation Abatement has filed a lawsuit against Ripple, accusing the company of defrauding investors and selling XRP asunregistered securities, as well as violation of federal laws.

The complaint was filed by lawyer Pavel Pogodin.through the Puerto Rican company Consensus Law on behalf of Bitcoin Manipulation Abatement LLC. Judging by information from open sources, the organization was created in March last year by Pogodin himself, who is listed as a “local representative”.

According to court documents filed in the DistrictNorthern California Court, Bitcoin Manipulation Abatement, alleges that Ripple and its CEO, Brad Garlinghouse, provided false information about XRP that mislead investors.

According to the plaintiff, this was done in order to increasedemand and increased profits from XRP sales, which violates California securities laws, as well as laws to combat unfair advertising and competition. Bitcoin Manipulation Abatement intends to recover compensation from Ripple for its losses.

“No matter how ironic it may sound, but the situationIt looks like the Bitcoin Manipulation Abatement legal entity was intentionally created to bring charges against Ripple and initiate a lawsuit, ”Stephen Palley, an Anderson Kill law firm partner, wrote on Twitter.

Many reasons for the new Bitcoin Manipulation lawsuitAbatement are consistent with other claims that were previously filed against Ripple. In 2018, a California resident, David Oconer, accused the company of violating U.S. securities laws and demanded damages from falling prices.

In the same year, investor Bradley Sostack filed a class action lawsuit, but Ripple filed a motion to reject it, as Sostak was unable to prove the fact of XRP purchase during the ICO.

Recall that in November Bitcoin Manipulation Abatement sued the FTX cryptocurrency derivatives exchange, accusing it of manipulating the market and intending to recover $ 150 million from it.

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