Ripple back on the unfolding of an unexpected lawsuit

Some cryptocurrencies seem to be treated separately, not to mention preferential treatment by the institutional sphere. In any case, recent facts relating to the lawsuit regarding a claim of alleged fraud on securities are quite disturbing.

Ryan Coffey , an investor and owner of XRP , initiated this class action against Ripple, claiming he lost $ 551.89 by trading XRP crypto , which the complainant alleges violates federal and state securities laws. The class action lawsuit focuses on whether or not XRP is a security (" securities ") given its relationship with Ripple.
And regarding this case, two rather unexpected developments, will clearly favor the defense of Ripple.

Two former SEC officials help Ripple

According to the investor party, Ripple continues to be a centralized registry and continues to profit at the expense of its investors . They believe that Ripple should be registered with SEC as an entity providing securities.First, Ripple Labs employed Mary Jo White and Andrew Ceresney to represent them in this class action for the alleged sale of unregistered securities, as reported on Law.com this June 4th . But Mary Jo White and Andrew Ceresney happen to be two former officials of the SEC (Securities and Exchange Commission) , which is one of the highest federal authorities for financial regulation in the United States. Mary Jo White was even the former president of the SEC during the end of Obama's term. We can say that Ripple Labs has a good defense.

According to the other party, represented by Ripple's spokesperson, the decision as to whether crypto is a security or not should be left to the SEC's decision:

"We continue to believe that XRP should not be classified as a security."

Change of jurisdiction favorable to Ripple

Second troubling development of the case: she was transferred from the California State Court to a federal district court in Northern California. Ripple's lawyers wanted the complaint to be heard in a federal court , rather than in the San Francisco Supreme Court , where the complaint had originally been filed.

Taylor-Copeland , the lawyer of the camp of the investors, concludes on its side that it is "totally inappropriate" that the case is entrusted to the federal court (more favorable to the SEC, the institution being itself federal) , and that he will fight against Ripple's battery of lawyers so that this case is treated in the state court of California (a priori more independent of federal institutions).

Whatever happens to this case, it is not going to fix the reputation of the XRP as "the crypto banks" led by Ripple, with such sources to feed it.