What Does the Lawsuit Claim

The current lawsuit against XRP/ Ripple Labs has two important parts in my opinion.

First; Federal prosecutors are alleging that Ripple Labs executives were selling, and are currently selling the XRP token as a Security and getting rich off of the profits; a big no no in the financial world of the United States of America. Selling unregistered securities is a financial crime that will never be overlooked by the Wall Street overlords who run the SEC ( Security and Exchange Commission ).

I'm no legal scholar, but living in the United States my entire life I have seen my share of lawsuits involving the SEC. The federal government usually doesn't bring a case like this against someone unless they know they have the evidence to hammer them to the wall. It's how they operate. Just look at their conviction rate if you doubt what I am telling you. They aren't new to this game, and they own the "court " .

Next; Federal prosecutors are claiming that the XRP token itself is an unregistered security, and therefore subject to the laws governing the sale of securities to the public.

Now here is where we start to run into trouble with the federal governments lawsuit. They are claiming that the XRP token itself has no value as a fuel for cross- border payments. Here is the problem with that accusation. They literally contradict themselves in their very own lawsuit.

Ripple Labs created their cross border payment product ODL ( On Demand Liquidity ) for the XRP token to be used as Utility to transfer money across International borders, and not as a security as the government claims.

According to Ripple Labs, XRP will be used to send payments across International borders where they can then be converted into whatever fiat currency the person, or institution receiving the transaction uses in their native country.

Here is a quote taken directly from the federal governments lawsuit. Have a read for yourself, do you see where the problem is here ?

“ODL involves a transaction in which a money transmitter in a sender’s jurisdiction converts fiat currency into XRP, transfers the XRP to a recipient’s jurisdiction, and converts the XRP into the fiat currency of that locale. Typically, instead of holding XRP directly, money transmitters who may use ODL would rely on market makers in the sender’s and recipient’s jurisdictions to trade in and out of XRP in about ninety seconds or less.”

Did you see it ? The lawsuit is contradicting itself. You don't have to be a legal expert to understand what that statement is saying. The XRP token is a Utility, not a Security.

So what does this all mean ?

In my opinion this is good news for Ripple Labs and XRP token holders, but bad news for Ripple executives caught with their hands in the cookie jar. I believe if the judge hearing the case is not biased they easily see the problem with the federal governments case claiming that XRP is not a Utility, and dismiss that part of the lawsuit wholeheartedly. This is only my opinion, but it looks pretty cut and dry to me.

What is also obvious to me is that the Ripple executives very well may have broken the law by selling the XRP tokens for personal profit, and illegally funding their projects. We will have to wait and see what kind of evidence the prosecutors bring against them once the case goes to trial. One thing is for certain; If this was you, me, or your uncle Joe, we would be going to prison for a long time. Lucky for the Ripple guys people like them just pay big fines and avoid jail time.

Why I was wrong

Here is where I swallow my pride and admit I jumped to conclusions without doing the proper research. Instead of waiting for all of the facts in the case to come out, I found Ripple guilty without hearing their side of the story.

In the United States of America every citizen and corporate entity is afforded due process under the law. Our Constitution makes clear our right of being presumed innocent until proven guilty in a court of law. It doesn't matter what accusations someone brings against you, you shouldn't have to face repercussions until all of the evidence has been presented, you are given the chance to defend yourself, and a verdict is reached by a judge, and/or a jury of your peers.

What can we do now

I think right now our best bet is to wait for the case to play out in court, and see what kind of counter argument the Ripple defense attorneys present to the judge. You can bet Ripple lawyers are very busy behind the scenes right now, so I wouldn't count them out just yet.

In the meantime I feel it is important that we all support Ripple Lab's right to a fair trial, and that we don't feed into the legacy media's FUD ( Fear Uncertainty & Doubt ) concerning the case.

Instead of just sitting back and watching exchange after exchange delist, or disable XRP trading, we need to start contacting these companies and letting them know that we do not support their decision. They are hanging the defendant before the case is even brought to the court. Think about the precedent this sets. In this climate of cancel culture we can't be silent. A lot of good people have been financially damaged beyond repair because of this careless approach of finding people guilty before the evidence is even presented.

Conclusion

Well, that is just about everything I wanted to clear up when it comes to my position on the Lawsuit against Ripple Lab's/ XRP. Never be afraid to admit you were wrong. It might not feel good at first, but trust me, in the end you feel much better about yourself.

Please leave a comment below and let us know what your opinion is concerning the lawsuit against Ripple Labs. Has the federal government once again over stepped their bounds, or do they have a legitimate case ? Will you continue to invest in XRP, or are you going to wait and see how things play out in court first ? And finally, what do you think about the cryptocurrency exchanges decision to delist XRP before the case even goes to court ?

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*Disclaimers

I am not a financial advisor. Nothing I write about is to be taken as financial advice. Everything in my articles are my opinions. I am not affiliated with Ripple Labs/XRP, or any entity I write about unless explicitly stated in this section of my articles.

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