The Northern California District Court recently dismissed a lawsuit against Ripple Labs, which has been ongoing since May 2018. In the lawsuit, the complainants wanted the court whether XRP was a security or not.
According to the investors, Ripple should have applied to the SEC for their XRP cryptocurrency to be registered as a security. However, Ripple has remained adamant that XRP is not a security throughout the proceedings.
The court ruled that the plaintiffs did not provide evidence to support the claims made against Ripple and others adjoined in the lawsuit. As a result, the court concluded that all accusations against Ripple were purported misstatements.
In its conclusions, the court noted that the plaintiffs had not offered any factual allegations to show that any statements made by Ripple and its CEO were false when they were made. In its argument, the legal team for Ripple said that all claims of fraud were unsupported leaps of logic. June had applied to have the lawsuit dismissed in June 2019.
The ruling no doubt ensures that Ripple can concentrate on the future development of the Ripple Network. Thus far, the company has managed to make huge deals and sin agreements with various major institutions. The court case would have put most of the projects in jeopardy if the ruling had gone the other way.
Major Deal between Ripple and Moneygram
In one of the deals Ripple has made thus far, they recently invested a further $8.8 million in Moneygram. The global remittances firm was bought by Ripple in 2019. Thus far, they have paid $43 million to the company. Moneygram’s acquisition by Ripple was an important one for Ripple. It helped them access the global remittances network with an in-house company.
It will no doubt play an important role in the growth of Ripple. The company’s goal is to revolutionize global payments by making them cheaper and faster. However, due to uncertainty regarding crypto in many jurisdictions, it could still take many years before this dream becomes a reality. Despite this challenge, many countries around the world continue to work on legislation that is supportive of crypto.