Ripple Labs, the parent company of the third largest cryptocurrency in the world, XRP has removed a lawsuit alleging XRP to be a security to the federal district court. Here, the attorney supporting the blockchain firm has retaliated over the allegation that Ripple did not register XRP as a security.
In addition, it was reported that Peter Morrison – the attorney – stated that the lawsuit comes under the periphery of the international cases as it is a consolidated class action, wherein an Israeli resident is also involved in the legal picture.
Utilizing the Class Action Fairness Act, Morrison pushed three points to back the removal of lawsuit. He mentioned that the lawsuit meets all the below requirements and stated:
“A putative class action may be removed to the appropriate federal district court if (1) the action purports to be a ‘class’ action brought on behalf of 100 or more members; (2) any member of a class of plaintiffs is a citizen of a state different from any defendant; and (3) the amount in controversy exceeds $5 million.”
Ripple is the parent company of XRP that reserves the rights to issue and distribute the tokens. Regarding this, the plaintiffs alleged that the firm is involving itself in the mentioned activities to manipulate the market price of the digital asset in the cryptocurrency market.
XRP has been a controversial cryptocurrency under the sight of those who have been caught in the dilemma of whether it is a security or not. This is majorly due to the fact that Ripple holds a large portion of XRP. However, the company has also claimed that the currency is locked up in escrow accounts via smart contracts that only allows 1 billion XRP to be freed every month for purposes related to the development of the ecosystem.