[Blockchain Today Reporter Ji-hye Han] Ripple, which is in a lawsuit with the US Securities and Exchange Commission (SEC), was also sued in Florida for violating securities laws.
According to industry sources on the 27th (local time), Florida XRP investor Tyler Toomey has filed a lawsuit against Ripple Labs and Ripple CEO Brad Garlinghouse for violating Florida securities laws. Even though registration was required at the financial regulatory office, it was not.
Tumi, who filed this lawsuit, mentioned that similar lawsuits have already been filed against Reflaps and Garling House. Earlier, on December 20, 2020, the U.S. Securities and Exchange Commission filed a $1.35 billion lawsuit against Ripple.
Tumi claimed that Ripple sold millions of dollars of unauthorized XRP, and that it made a significant profit. “Most of Ripple’s revenue comes from XRP sales (over $1 billion), and Ripple used that revenue to run the business,” he argued.
“The token should be classified as a stock,” the appellant argued, claiming that “Ripple made false documents about XRP.” It also claimed that Ripple had already known that XRP was a securities.
“Ripple Labs either created false documentation or omitted facts about the nature of XRP. In particular, we knew that XRP is a real securities, but we did not properly inform investors of this fact. The company already knew about XRP before it was released to the market.”
In accordance with US federal civil law regulations, Tumi was confirmed to have requested a jury trial.
Meanwhile, as the SEC filed a lawsuit against Ripple, several cryptocurrency companies such as Coinbase and Binance.US excluded Ripple from their trading list. This phenomenon proves that the lawsuit had an adverse effect on XRP. On the 15th, Polkadot’s DOT also outpaced XRP in market cap. Currently, it is known that XRP coins are being sold for less than $0.3.
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