XRP has had its fair share of struggles for the past couple of years when it comes to defining its status as a security or not. A plethora of investors claim that XRP was sold to them as security and have been actively seeking damages and a refund of their investment in the cryptocurrency.
Ripple has been trying to win the battle and filed a motion in December 2019 where it claimed the case by plaintiffs against it came way too late. They believe the lawsuit should have been filed within three years whenever they started selling XRP and ergo it should be dismissed. However, that plea fell on deaf ears as a judge decided in February that the case shall continue with an amended complaint.
Now two different lawsuit against it are set to be merged into one and them would be discussed on a federal level. Hamilton, a judge from the Northern state of California, has stated that one lawsuit led by Bradley Sostack on behalf of XRP investors who suffered a heavy loss financially when XRP crashed and other by the mysterious firm called bitcoin manipulation abatement LLC would become one consolidated case against XRP. The latter lawsuit alleges that XRP violated security laws.
The judge states that the core of the two cases is somewhat similar i.e. whether XRP is a security under US laws or not. He believes that of pr9ceeded separately it would cost a tremendous amount of labour and also could lead to conflicting results against the same defendant.
Lawsuits Tarnish XRP’s Image
These lawsuits add more misery and Ripple believes that it would have far-reaching damage on XRP’s reputation and utility as a cryptocurrency. Also, it would harm its already established market, which is suffering already and even lost its third spot when it comes to the market cap to Tether USDT for a brief period lately.
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