Important Update for a Ripple (XRP) Lawsuit

TL;DR

• Ripple is set to participate in a significant motion hearing for the Zakinov v Ripple Labs case later this month.
• The case, initiated in May 2018 by XRP holders against Ripple, alleges misleading information and illegal XRP sales as an unregistered security.
• Additionally, Ripple’s well-known legal conflict with the US SEC, starting in December 2020 over unregistered XRP security offerings, is highlighted, with a major trial scheduled for April 23, 2024.

Ripple’s Participation in Another Major Case

The case of Zakinov v Ripple Labs is nearing a significant development, with a motion hearing scheduled for January 11. The session will be held via a Zoom webinar before Judge Phyllis J. Hamilton and aims to approve the form and manner of class notice. Members of the public or media can access the hearing via a designated online link.

The lawsuit started in May 2018 when a group of XRP holders sued the crypto company, alleging it of providing misleading information and breaching certain laws by selling XRP as an unregistered security. The plaintiff, Vladi Zakinov (hence the name of the case), maintains that he and many others were among the victims.

The trial has been postponed numerous times in the past several years and is expected to start on April 15, 2024. 

Ripple’s Infamous Battle With the US SEC

The case between Ripple and the United States Securities and Exchange Commission (SEC) is arguably the company’s most popular court battle and one of the trendiest topics in the cryptocurrency industry, and it shares similarities with the above. It all started in December 2020 when the regulator accused Ripple of selling XRP in an unregistered security offering.

Ripple scored a major victory in July 2023 after US Federal Judge Analisa Torres ruled that secondary XRP sales did not constitute an offer of investment contracts.

The firm secured two additional partial victories in the following months when the American magistrates disallowed the SEC to appeal the initial decision and when Ripple’s CEO – Brad Garlinghouse – and Executive Chairman – Chris Larsen – were cleared of all accusations brought by the agency.

The grand trial is set for April 23, 2024, with both sides required to comply with necessary procedures before meeting in court. The SEC must file its brief with respect to remedies by March 13, 2024, whereas Ripple must file its opposition by April 12, 2024.