Recently legal action has been taken against Ripple labs for unlawful funding in the form of its cryptocurrency. Various causes have been filed by the Security and Exchange Commission on Ripple Labs. Despite many legal cases against them, they keep on funding such unlawful acts. Their cryptocurrency was being sold and purchased in the market even after many cases were filed, but this time, they were warned that their retail will be completely blocked until they provide sound evidence.
Many different exchanges, which included the significant ones operating in the United States, refused to trade XRP. This refusal of exchanges caused a suspicious attitude of the investors, and lead to decreased sales. Another impact of this trade stoppage was that the value of XRP cryptocurrency fell down significantly.
The case against Ripple labs is a grave concern among the investors and purchasers and the government. XRP is the third cryptocurrency giant with strong agreements with the central banks across the world for faster transactions. This enabled a smooth supply of XRP across the globe. The fall of such a cryptocurrency giant has taken the world by amazement.
The present case is not a very new legal action against the company. Various legal cases have been filed against the founder and CEO of Ripple Labs by its investors. The cases mostly described the company as defrauding and deceiving. The SEC did not mention fraud in its case, but they mentioned that the company made extra personal gains during their cryptocurrency uptime. The gains were basically from the security issuance of unregistered sales.
This act of the company allows the defendants to hold large amounts of XRP without registration. They can keep track of their cryptocurrencies using the portals of the company. This provides the company with personal gains and is against the interest of the investors. Ripple Labs took significant amounts from its investors without submitting any required documentation. They also did not provide any evidence of sales that they claim to achieve.
As the major exchanges and online cryptocurrency portals refuse to trade more on XRP, the sales decreased significantly due to inaccessibility. Moreover, the people who had previously purchased this cryptocurrency are willing to sell it as soon as possible to avoid any problems or further loss in the future. These increasing requests for the exchange of XRP have been denied by the exchanges. As the exchange refuses to cater the requests, the people who had invested in this cryptocurrency or had purchased it are now worried about its future status as things don’t seem to get any smoother.