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The Northern California District Court finds that the claims against Ripple Labs and its token filed by two investors cannot be proven.
The legal dispute, which began in May 2018, pitted Ripple Labs including CEO Brad Garlinghouse and disgruntled investors.
According to a report, disgruntled investors wanted the court to determine whether the “native XRP token is or is not a title by legal definition.”
Investors insist that “Ripple should have filed a formal request with the US Securities Exchange Commission (SEC) for their XRP cryptocurrency to become a stock.”
Ripple is “adamant with the latter” and has claimed to be innocent of any legal wrongdoing during the proceedings.
According to the court results published online by Law360, the court issued the following verdict:
The court found that the lead plaintiff had failed to provide the necessary evidence in court to support multiple claims regarding XRP’s unsafe status, Brad Garlinghouse’s personal holdings and monetary intentions, XRP’s sales strategy, as well as company software products.
The court file concludes that “all these allegations were ‘alleged inaccuracies'”.
The Northern California District Court also stated that the plaintiff “did not provide the factual allegations necessary to prove that Ripple’s and Mr. Garlinghouse’s claims were false when they were made.”
For its part, Ripple’s legal team had argued that all pending fraud allegations were “unsupported logical leaps”. In June 2019, Ripple’s legal team asked the court to drop the allegations.
In an unrelated matter, Moneygram reports that it received $ 8.8 million in net benefits from Ripple. The global remittance agency says market development fees, which amounted to $ 15.1 million, are “partially offset by related transaction and trading expenses of $ 6.3 million.”
In its 2019 annual report, Moneygram defines market development fees as the compensation for providing liquidity to Ripple’s on-demand liquidity network (ODL)
Ripple, which completed its acquisition of a stake in Moneygram in 2019, has so far paid Moneygram $ 43 million to provide liquidity to its ODL network.
Meanwhile, Whale warning reported on August 1, 2020 that 500,000,000 XRP tokens with a USD value of $ 134,917,611 have been unlocked on the Ripple Escrow wallet.
XRP recently regained its position as the third largest digital currency by market capitalization after the token gained 10% in 24 hours. At the time of publication, the token was trading at $ 0.27.
What does the court ruling mean for Ripple and its XRP token? Tell us your thoughts in the comments section below.
Image credits: Shutterstock, Pixabay, Wiki Commons
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