Ripple Faces Lawsuit for Securities Violations From Angry Investor

ripple-xrp

The investers who lost money in his investment is now suing Ripple for damages.

Ryan Coffey, an investor who appears to have made losses trading Ripple, filed a lawsuit against the company “on behalf of all investors who purchased Ripple tokens” on Thursday.
Ryan now claims that Ripple violated the Securities Act because what it is selling is essentially a security that isn’t registered with the SEC. However, XRP’s status as a security is still under debate.
Reddit’s user are discussing – Coffey is suing Ripple because he regrets a FOMO purchase of XRP that resulted in losses.

User father_mucker jokingly asked, “Can I sue them as well for not mooning already?”

“If loss of investment caused by FOMO is a legitimate case, then I guess all the people from December should start lining up with their lawyers for a payout,” wrote user Kenjiquest.

Coffey insists that XRP is a security because “purchasers reasonably expected to derive profits from their ownership” of it. While, Coffey is feeling wronged by Ripple and it’s likely that the SEC would have already acted against such a high-profile company by now if it thought it was violating any laws.

But the simplest fact is that the lawsuit will reach any headway. However, if it does, we might see it used as a conduit by which the SEC would regulate the cryptocurrency market going forward.

 

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