Another sore investor sues Ripple, tension builds for regulation
Another class-action lawsuit has been filed against Ripple Labs Inc., Brad Garlinghouse and XRP II LLC. The lawsuit alleges that Ripple is a security under California law. The lawsuit states that the XRP token, despite being called a ‘token’ is actually a security as it indiscriminately offers XRP for sale to the public at large and that it uses the funds raised from the sale of XRP for funding. This is the characteristics of a security, as per the complaint. The complaint goes on to say that the plaintiffs are effectively powerless to control the success of Ripple and XRP, with the investments being at substantial risk.