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Summary

Ripple is facing a new securities case in the Californian district court, following its recent victory over the SEC. The lawsuit targets Ripple CEO Brad Garlinghouse for alleged misleading statements related to XRP’s classification as a security.

Introduction

After a four-year legal battle with the SEC, Ripple Labs is now confronting a securities case in California, specifically targeting its CEO for statements made in a 2017 interview regarding XRP’s status as a security.

Main Points

The lawsuit accuses Brad Garlinghouse of misleading investors with his statements about XRP, leading to a jury investigation initiated by Judge Phyllis Hamilton. The judge’s ruling suggests that XRP could be deemed a security if sold to non-institutional investors, based on Garlinghouse’s statements.

Ripple’s defense centers around the Howey Test conducted in July 2023, which classified XRP as not a security. They argue that this ruling contradicts the claims of misleading statements by the CEO and emphasize their compliance with federal laws regarding XRP.

Conclusion

While facing legal challenges, Ripple remains steadfast in defending its position on XRP’s classification and the statements made by its CEO. The case highlights the ongoing regulatory scrutiny in the cryptocurrency industry, with Ripple navigating through legal complexities to protect its interests.

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