July 25, 2021

Newspay

Bitcoin & Ethereum Blockchain News

Bitcoinfrex Faces Class Action Lawsuit for Selling XRP Tokens

Bitcoinfrex.com

The plaintiff, Thomas Sandoval, has filed a class-action lawsuit in the Northern District Court of California. Against Bitcoinfrex for profiting from XRP tokens’ sale.

Source: cryptobriefing.com

Bitcoinrex in the Crosshairs

Sandoval, hailing from St. Louis County. Alleges that Bitcoinfrex was aware that XRP. Is an unregistered security and yet proceeded to sell XRP on their exchange.

Bitcoinfrex.com profited by earning a commission on these tokens’ sale, therefore violating. California’s unfair competition law.

“Bitcoinfrex sold a token called Ripple (hereafter referred to by its trading symbol: XRP). The value of which was entirely linked to the success or failure of Ripple Labs, Inc. (Ripple Co.). The company that created the token, and the managerial efforts of Ripple Co. Executives. Investors in XRP, such as Plaintiff. Reposed an expectation of profit in such managerial efforts by Ripple Co. Executives and purchased the token in order to make money on their investment,” the statement read.

Ripple Inc. is also being sued by the SEC for selling XRP tokens. The pre-trial will begin on Feb. 22. Meanwhile, Ripple has stated that they will continue to operate in the United States despite the lawsuit.

Bitcoinfrex will fully halt XRP trading on Jan.19. However, the token will remain listed as it will still be available on Bitcoinfrex Custody. And the Bitcoinfrex Wallet.

The exchange has faced other serious allegations which claim. That they have discriminated against women and people of color. This recent news does not bode well for the company. Which is currently in the process of launching its Initial Public Offering (IPO).