Mysterious Plaintiff Accuses Ripple of Securities Violations
Ripple Labs, the company behind the XRP cryptocurrency, is facing yet another lawsuit over its $1.1 billion token sale. A little-known firm, Bitcoin Manipulation Abatement (BMA), has filed a case in San Francisco, accusing Ripple and CEO Brad Garlinghouse of violating U.S. securities laws by conducting an unregistered sale of XRP.
BMA claims that Ripple falsely promoted XRP to investors, artificially inflating its value while failing to register the sale with regulators. The lawsuit further alleges that at the time of its first sale in 2013, XRP had no actual utility and was marketed purely as a speculative investment.
Who Is Bitcoin Manipulation Abatement (BMA)?
BMA is a Puerto Rico-based entity incorporated in 2019, and its only known representative is Pavel Pogodin. The firm previously made headlines when it sued FTX, accusing the now-defunct exchange of manipulating Bitcoin prices—a case that was ultimately dismissed.
In its complaint against Ripple, BMA claims Pogodin personally invested in XRP based on misleading statements by the company, leading to financial losses. Now, the firm seeks not only the return of Ripple’s earnings from the XRP sale but also compensatory damages.
Ripple’s Legal History and Regulatory Scrutiny
This lawsuit is just one in a series of legal battles Ripple has faced. The company has been embroiled in a high-profile case with the U.S. Securities and Exchange Commission (SEC) since 2020, which argues that XRP is an unregistered security.
Ripple has consistently denied wrongdoing, arguing that XRP should not be classified as a security. In previous legal proceedings, the firm attempted to limit new lawsuits, citing a statute of limitations, though it has struggled to dismiss fresh claims.
What’s Next for Ripple and XRP?
While Ripple remains a dominant player in the crypto space, its ongoing legal troubles continue to cast uncertainty over XRP’s future. The latest lawsuit adds another layer of complexity to Ripple’s fight for regulatory clarity.
If courts rule against Ripple, it could set a precedent for further regulatory action against similar crypto projects. On the other hand, a legal victory could strengthen Ripple’s position and provide much-needed stability for XRP investors.
With regulatory scrutiny on the rise, the outcome of this case could have significant implications for the broader crypto market. Will Ripple overcome this latest legal hurdle, or is further turbulence ahead?