The CEO of Ripple is currently awaiting trial for allegedly making “misleading statements” during a 2017 interview

The CEO’s assertion that he was “very, very long” on XRP is the subject of the allegations. The plaintiffs contend that he sold millions of XRP in the same year.

Ripple Labs, the blockchain company that has been the subject of criticism for its sale of XRP tokens, is currently embroiled in yet another legal dispute. A California federal court judge has granted approval to a civil securities lawsuit against its CEO, Brad Garlinghouse.

The claim says Garlinghouse made “misleading statements” in an interview in 2017. The case will now go to trial, where a jury will hear it.

A 2017 interview with Canada’s BNN Bloomberg in which Garlinghouse declared that he was “very, very long” on XRP is the focal point of the lawsuit. Nevertheless, the plaintiffs contend that this assertion was deceptive, as Garlinghouse purportedly sold millions of XRP in the same year.

Judge Phyllis Hamilton dismissed four allegations about Ripple’s neglect to register XRP as a security last year. Nevertheless, the judge permitted the claim regarding Garlinghouse’s purportedly misleading statements to proceed.

This lawsuit is distinct from the ongoing legal dispute between Ripple and the Securities and Exchange Commission (SEC), which contends that XRP is a security.

The sale of XRP on exchanges and through algorithms did not violate U.S. securities regulations, according to a New York federal court ruling in July 2023. However, sales to institutions do.

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