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On 7 August, a global law firm, Rosen Law Firm, issued a press release stating that it is investigating Ripple Labs, Inc. and XRP. The company has confirmed that it is inspecting to see if Ripple has violated certain federal security laws in association with the sale of XRP tokens. According to reports, the law firm Rosen is preparing a collective legal action, trying to recover the damages suffered by investors in the XRP tokens.
On 27 June, another private investor XRP accused the CEO Bradley Garlinghouse and Ripple Labs Inc. of illegally taking advantage of the increase in the value of the XRP token. Previously, on May 3, Taylor-Copeland's law, one of the first law firms in California, had filed a collective legal action against Ripple Labs.
According to reports, the case concerned Ripple, its subsidiary XRP II and Brad Garlinghouse, for the sale of unlisted securities. The company claimed that the sale of Ripple tokens is a violation of US federal securities laws.
Another case was filed by a California resident, David Oconer, in the Superior Court of California, San Mateo County, about Ripple and XRP claiming that the company created the XRP token and then used the sales of tokens to finance its operations and development of the XRP ecosystem.
As stated by CNN, the complaint read:
"Ripple's public commitment to limit the offer of XRP has had the desired effect." In the weeks that followed, the price of XRP increased rapidly, from around $ 0.22 per token on 7 December 2017 to $ 3.38 per token on 7 January 2018, "
In addition, Oconer stated that the company had a full grip on XRP ledger and that the network is not decentralized like Bitcoin or Ethereum.
While these statements about the Ripple controlled by Ripple have been resized, many still believe that Ripple has control of the currency itself. Furthermore, Ripple does not use the funds obtained from the sale of XRP on the secondary market, which removes it from the definition of security.
