The company behind the fourth-largest cryptocurrency by market value has partially succeeded in its application to dismiss its suspected securities fraud group.
According to a court ruling, U.S. District Court Judge Phyllis Hamilton of Northern California approved part of Ripple’s motion, including dismissing the charges against the company and its CEO Brad Garlinghouse, but the judge rejected Ripple’s motion to dismiss other parts of the lawsuit.
The allegations against Ripple come from some investors who are dissatisfied with XRP, who believe that Ripple and Garlinghouse did not register XRP as a securities recognized by the United States Securities and Exchange Commission (SEC) and made misleading statements about the cryptocurrency.
In the ruling, Judge Hamilton agreed to dismiss the sixth allegation of misleading XRP advertising and the seventh allegation of illegal securities issuance. However, he rejected other parts of Ripple’s motion, which was adjusted at the end of February this year, including the dismissal of Garlinghouse’s motion to “distort XRP investment status.”
Garlinghouse previously stated that “XRP accounts for a very, very high proportion of my personal balance sheet”, but in fact, he has sold millions of dollars in XRP tokens.
According to a report by “Beijing”, institutions in various countries are currently taking frequent actions against the encryption industry. Last week, the crypto derivatives exchange BitMEX was also accused by the US Commodity Futures Trading Commission (CFTC).
Image source: pixabay
Author Liang Che
