Ripple is being sued for manipulating and using XRP for its own purposes

Ripple was charged in another lawsuit linked to the XRP cryptomeo, court records show.

Investor Vladi Zakinov filed a class action suit on Tuesday, accusing Ripple Labs, CEO Brad Garlinghouse and 25 other anonymous individuals as defendants. The complaint was submitted to the California Superior Court in San Mateo County.

Zakinov's claim focuses on the claim that the XRP token is a security controlled by Ripple. The lawsuit claims that Zakinov bought XRP in January 2018 and "was harmed by it."

He argued in the complaint:

"XRP, despite its token name, is actually a guarantee under California law. In particular: (i) Ripple uses the funds raised from the sale of XRP to finance its ventures; (ii) the Company indiscriminately offers XRP for sale to the general public; (iii) the author and Class (as defined herein) are effectively powerless to control the success of Ripple and XRP; and (iv) the investment of the applicant and Class members is substantially at risk and is without security. "

The filing continued to state that Ripple and the other named defendants "were required to file XRP when offering or selling it", but did not do so. In addition, the lawsuit claims that the defendants "made a series of improper statements that raised the price of XRP," which helped Ripple to receive higher returns from the sale of the tokens.

However, the lawsuit continues, investors have lost money - and have the potential to continue losing money - because XRP owners can not control Ripple.

A Ripple spokesman pressed strongly against the claims of the case:

"This is just another example of an extortionist bringing opportunistic action that lacks merit. We feel confident that the allegations about XRP are completely unfounded in both law and fact, "said the representative.

Source: https://www.profitconfidential.com/cryptocurrency/ripple/