Off the shores of the bearish crypto market, Ripple XRP has recorded a slight win against its plaintiffs after the lawsuit was moved to a Federal Court.
According to a financial news agency, Unbnked, the lawsuit suit was moved to a higher court for two reasons. First, the plaintiffs come from different States, making it almost unlikely that a ruling will be announced by a single State Court.
Secondly, the total lawsuit against Ripple is now in excess of $5 million, a situation that laws require a Federal Court takes over the case.
The reports suggest that Ripple favors a move to a Federal Court because State judges in the legal system are more sympathetic to the plaintiff(s).
On the other hand, the plaintiffs who favor the lower courts have already filed a request to move the case back to the States jurisdiction.
Inside Ripple XRP Lawsuit With Investors
The ongoing Ripple XRP lawsuit has emanated from investors who filed a case against Ripple Labs for issuing tokens that should be registered under the U.S SEC as ‘security’.
According to the plaintiffs, XRP should be regarded as ‘security’ because the project founders hold large amounts of the token and therefore control the majority of the market share.
On the opposite side of the case, Ripple Labs refused to accept the charges and insist that the XRP token is only a currency like Bitcoin, and also that they do not have an influence on the token’s price movement.
Members of the crypto community hold the same diverse views on the XRP coin and will hope that moving the issue to a Federal Court will allow a decision to be announced more swiftly.
Add Comment