The lawsuit that alleged XRP to be a security has been removed by the Ripple Labs, the company behind that XRP Cryptocurrency. The company’s lawyer stated that Ripple never registered XRP as a security and that the allegations of XRP being a security shall be removed.
Peter Morrison who is representing Ripple Labs in the lawsuit stated that the lawsuit comes under the edge of the international cases being a solid class action.
The lawyer stated 3 points in support of the company to remove the lawsuit, wherein he mentioned:
A putative class action may be removed to the appropriate federal district court if
1. the action purports to be a ‘class’ action brought on behalf of 100 or more members
2. Any member of a class of plaintiffs is a citizen of a state different from any defendant and
3. The amount in controversy exceeds $5 million.
The Lawsuit
The XRP lawsuit claims that Ripple’s XRP should have been registered as a security and that Ripple Labs and its CEO have been manipulating the price of XRP for their own benefit.
The Ripple Lab lawyers moved the case from a state court to a federal court. This may be because it is believed that the judges at Federal Courts are more sympathetic towards
corporate defendants.
What if XRP is deemed to be a security by the court?
If the court’s decision proves XRP to be a security it may prove to be very harmful to the whole cryptocurrency community as it may have a negative effect one of the top 3 cryptocurrencies in the market.
