Ripple: a new scandal around the company

In the United States against the company Ripple was filed a collective lawsuit. The company Ripple Labs, which controls the third largest cryptocurrency, was accused of creating a scheme that allowed to collect hundreds of millions of dollars through unregistered sales of XRP tokens, reports Bloomberg. One of the investors of XRP accused the company of violating the federal securities law, as well as the laws of the state of California.

According to investor Ryan Coffey, Ripple actually conducted an “endless ICO,” which should be classified as the sale of securities under the provisions of the US Securities Act and the California Corporate Code.

“The respondents received huge profits, quietly selling XRP to the general public, which can be regarded as an endless initial coins offering (ICO). To raise demand for XRP and increase profits from its sale, Ripple Labs positioned XRP on a regular basis as a good investment, voiced optimistic forecasts about its price, and made XRP an integral part of corporate clients” – the suit said. Source:

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