American investor Tyler Toomey filed a lawsuit against Ripple, the company responsible for issuing the cryptocurrency XRP, and against its founder, Brad Garlinghouse. The plaintiff demands compensation of USD 5 billion after having lost the sum of USD 48 due to the recent fall in the price of the asset.
In November 2020, Tomeey acquired 135 XRP at a price of $ 0.72 each. He paid, in total, around USD 97. After the lawsuit that the United States Securities and Exchange Commission (SEC) filed against Ripple in December 2020, the price of the cryptoactive was reduced and this trader sold his holdings for USD 49.
The loss of USD 48, almost half of his investment, motivated this Florida resident to initiate legal actions against the company. He did so in the form of a class action lawsuit, on his behalf “and on behalf of everyone else in a similar situation.” To initiate the legal dispute, Toomey had to pay USD 402 for administrative expenses , a figure considerably higher than his investment in XRP.
Toomey, in line with the SEC’s lawsuit, alleges that Florida investors did not have access to comprehensive information on XRP before putting their money there. This, according to the plaintiff, would not have occurred “if the defendants had complied with the law.”
According to the SEC, as reported by CriptoNoticias, Ripple would have committed a crime by selling XRP as a digital currency when, according to the regulator, it is an unregistered security .
The investor’s legal litigation began on January 25, 2021 and is ongoing according to the usual procedures. The magistrate in charge of the judicial process is Joel B. Toomey. The fact of sharing the same last name of the plaintiff has raised suspicions in members of the XRP investment community, due to the possibility that both parties have family ties.
“You can blame Congress and the SEC,” said a lawyer
On the case, the lawyer Jesse spoke Hynes, connoisseur of the legal aspects related to bitcoin (BTC) and other cryptocurrencies. “These things are going to continue to happen and you can blame Congress and the SEC for it,” he said.
The lawyer, who positions himself in favor of the growth of the cryptocurrency industry, took advantage the occasion to criticize Senator Maxine Waters, who proved to be opposed to the advancement of this technology. She recently sent a letter to President Biden in which she suggested that he dismiss the OCC order granting freedoms to banks to use stablecoins and non-permissible blockchains.