XRP Lawsuit Moves Forward: Ripple CEO Faces Jury Over Security Law Claims

Federal Judge Phillis Hamilton’s order has given the go-ahead for a civil lawsuit against Ripple Labs. The suit claims CEO Brad Garlinghouse broke California security laws. A jury will now decide if Garlinghouse lied in a 2017 interview. The lawsuit also accuses Ripple of failing to register XRP as a security four times.

In the 2017 interview on BNN Bloomberg, Garlinghouse said he was “very, very long” on XRP. But the lawsuit says this wasn’t true because he sold millions of XRP that year.

Judge Hamilton rejected Ripple’s attempt to dismiss the “misleading statement” claim. Ripple argued that XRP isn’t a security, citing a July 2023 ruling in their favor against the SEC. But Hamilton disagreed, saying XRP could be a security when sold to regular investors.

Hamilton wrote, “The court won’t assume investors would expect profit just from crypto market trends, rather than Ripple’s work on cross-border payments and other efforts.”

Ripple Faces Off with SEC Over $1.95 Billion XRP Fine

In related news, the SEC and Ripple are battling over fines. The SEC wants $1.95 billion, but Ripple suggests just $10 million. Ripple points to the SEC’s recent deal with Terraform Labs to justify the lower amount. The SEC rejected this, saying it’s not enough to serve the purpose of civil penalties.

This lawsuit adds to Ripple’s legal troubles. The company has fought regulators for years over XRP’s status as a security. While they won a partial victory in 2023, this new case shows the debate isn’t over.

The outcome of this lawsuit could have big effects on Ripple and the wider crypto world. If the jury finds Garlinghouse lied, it could damage Ripple’s reputation and lead to hefty fines. It also sets a precedent for how other crypto companies and their leaders are held accountable.

As the case moves forward, all eyes will be on the courtroom. The crypto community waits to see how this latest chapter in Ripple’s legal saga will unfold and what it might mean for the future of digital assets.

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