Ripple Security Case: The Decision May Still Take Some Time To Come Says Lawyer Chervinsky

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Ripple Security Case: The Decision May Still Take Some Time To Come Says Lawyer Chervinsky

One of the most awaited legal judgments that the crypto world is waiting for is the case pertaining to Ripple(XRP) being security or not. But according to the latest update put forward by Lawyer Chervinsky, the wait could just get a little longer as the presiding judge has vacated the next week’s case management conference.

Will Ripple’s wait gets over in February or will it stretch longer?

Well, the debate whether Ripple is a security or not could stretch a little longer as the next case management conference for the case(s) with respect to Ripple being security or not has been vacated by presiding judge Hamilton. This update came as a tweet from Jake Chervinsky, who is a lawyer himself and is keeping a close eye on the Ripple case along with many other cases where cryptos are involved.

Chervinsky has sighted a variety of reasons why Judge Hamilton could have canceled the hearing. According to him, Judge Hamilton might need some time to think over her decision or she may just move this case back to the state court. While Chevinsky says these reasons could be a probability, things could be as light as “so the parties wouldn’t have to show up again next week. Or maybe she’s going out of town”

In all probability, Chervinsky feels the only decision Judge Hamilton will make at this stage is whether the motions to remand are granted or denied, and thus whether the case stays in federal court or goes back to state court. Whatever happens here, the final judgment is still months or years away from a final resolution in the case.

Ripple has been amidst debate for quite some time regarding it being security or not because of the centralization claims. Currently, it is defending one lawsuit which is a combination of three cases in California courts which include  Two state cases in San Mateo County, brought by plaintiffs Zakinov & Oconer and one federal case in the Northern District of California, brought by Greenwald.

Initially, Ripple had four cases are security class actions and all of the cases allege Ripple for the same thing that is XRP is security and Ripple violated state & federal law by failing to register it before offering, promoting, and selling it to retail investors.

An excerpt investor Zakinov class action lawsuit complaints the following

“XRP, despite its name as a ‘token,’ is actually security under California law. In particular: (i) Ripple uses the funds it raised from the sale of XRP to fund its business ventures; (ii) the Company indiscriminately offers XRP for sale to the public at large; (iii) plaintiff and the Class (as defined herein) are effectively powerless to control the success of Ripple and XRP; and (iv) plaintiff and the Class members’ investment is substantially at risk and is without any security.”

But in November 2018, Attorneys for Ripple Labs and its affiliated defendants filed to move a consolidated class-action lawsuit from its previous venue at the San Mateo Superior Court to the U.S. District Court, Northern District of California as the consolidated suit matches the requirements for a case to be brought before the higher, federal court. This consolidation clubbed the three cases filed by plaintiffs Avner Greenwald, David Oconer and Vladi Zakinov while the fourth suit filed by Ryan Coffey was voluntarily dismissed by the plaintiff, though Ripple’s attorneys later filed to have it related to Zakinov’s suit.

While the debate is still on, everyone has their eyes stuck on to judge Hamilton’s next move. It would all joys on the street for XRP if the case goes in favor of Ripple but if it goes against it or moves back to state courts it could see a knee jerk sell-off.

Will Ripple get a decision soon or will the wait continue? Do let us know your views on the same.

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Ripple Security Case: The Decision May Still Take Some Time To Come Says Lawyer Chervinsky.
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Ripple Security Case: The Decision May Still Take Some Time To Come Says Lawyer Chervinsky.
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One of the most awaited legal judgments that the crypto world is waiting for is the case pertaining to Ripple(XRP) being security or not. But according to the latest update put forward by Lawyer Chervinsky, the wait could just get a little longer as the presiding judge has vacated the next week’s case management conference.
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Nilesh Maurya 669 Articles

Nilesh Maurya has been associated for past 8 years as an Investment Banker with Omega Capital, a bespoke Investment Banking outfit having offices in Mumbai, New York, Singapore, and Dubai. He has been a regular contributor to business publications such as Business India and Market Express and has been a mentor to many start-up companies. Reach out to him at Nilesh Maurya has been associated for past 8 years as an Investment Banker with Omega Capital, a bespoke Investment Banking outfit having offices in Mumbai, New York, Singapore, and Dubai. He has been a regular contributor to business publications such as Business India and Market Express and has been a mentor to many start-up companies. Reach out to him at [email protected]

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