The cryptocurrency XRP and its foundation Ripple are currently under increased scrutiny from the regulators. Recently, a shred of new evidence has emerged in the form of a document that shows the company has been misusing the XRP cryptocurrency to increase its wealth.
In 2018, Bradley Sostack had filed a lawsuit accusing Ripple of selling him XRP as an unregistered security. However, Ripple claims that these allegations have no merit and said that Sostack’s claim violates the statute of limitations.
Besides, in August 2019, a group of investors filed a complaint against Ripple with the SEC. The report claims to provide concise evidence that Ripple used the XRP token to garnish huge profits and claims that the company is currently engaged in selling tokens in excess for profit.
These allegations, if found to be true, will put cryptocurrency XRP and its foundation Ripple in a bad situation, besides being under the attack of the SEC. However, despite the increased scrutiny, XRP seems to continue growing ranking number 3 on CoinMarketCap.
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Nurul is an English Language graduate who is highly passionate on writing, she literally breathes on it. An avid reader and a critical thinker, she covers on blockchain news during day and weeps at sad novels at night.