Attorneys for a company called Bitcoin Manipulation Abatement LLC take filed a lawsuit in a U.Southward. federal commune courtroom alleging Ripple misled investors and sold XRP as an unregistered security in violation of federal law.

Co-ordinate to court documents filed May one, the mysterious entity with lilliputian online presence accused Ripple and its Principal Executive Officer (CEO) Brad Garlinghouse of raising more than than a billion dollars through the sale and marketing of XRP as an unregistered security.

"...in society to drive need for and thereby increase profits from the auction of XRP, Defendants have fabricated a litany of imitation and misleading statements regarding XRP in violation of California'due south securities laws, and false advertizing and unfair competition laws."

Bitcoin Manipulation Abatement LLC seeks to "recover damages" and "obtain other relief" related to the declared violations.

The same firm likewise filed a $150 million lawsuit against crypto derivatives commutation FTX in November 2022 which was subsequently dismissed one month later. Loftier profile members of the crypto community like Binance CEO Changpeng Zhao expressed his thoughts on the lawsuit claims, calling them "very far fetched".

Ripple facing long-running lawsuit

The firm has faced its fair share of legal action, whether short lived or not, over its XRP token, currently the third most valuable by market cap. A class-action lawsuit brought in May 2022 — and currently moving forrard — by attorneys for XRP investor Bradley Sostack has similar allegations of deceiving investors and violating securities laws.

While Sostack does seek amercement and compensation for legal costs, ane of his stated goals was the recognition of XRP as a security. Notwithstanding, an amendment filed on March 25 suggested he was hedging his bets on the possibility the court may not acknowledge information technology as such. The U.S. Securities and Commutation Commision (SEC) has not still taken a position on the thing.