Ripple Finally Reached a Settlement with YouTube for XRP Scams

Ripple and YouTube have finally reached a settlement for its legal dispute where allegations that the video-sharing giant failed to control and disable scam accounts impersonating Ripple’s CEO. The said videos impersonated Brad Garlinghouse and offered XRP cryptocurrency giveaway for a small fee.

The atrocious promotions involved several hacked YouTube accounts that promised XRP in exchange for a small initial payment. One of the scams found reportedly resulted in over $15,000 worth of stolen XRP. Ripple Alleged that the scam victims were defrauded out of millions of the cryptocurrency, which was worth around the hundred thousands of dollars. 

Caption: Ripple and YouTube reached a settlement on their legal dispute

In a complaint filed by Ripple with the US district court in Northern California in April 2020, the company said that the scam resulted in “irreparable harm” to the company’s public image, brand, and reputation because of the “direct consequences” of the deliberate and inexplicable failure of YouTube to address a pervasive and damaging fraud that happened on the video streaming platform. 

In a tweet thread, Ripple CEO Brad Garlinghouse said that he firm has reached a resolution with YouTube and will be working together with the video streaming website to prevent, det4ect, and down scam accounts on the platform. 

Garlinghouse said that social platforms are starting to acknowledge their role in letting crypto scams persist and are recognizing that they need to be part of the solution. He says that some, like XRP Forensics, are helping detect and track stolen funds. However, he notes that platforms need to lead the charge against these scams.

Garlinghouse also mentioned that some of the settlement terms with YouTube are confidential. He stated that it was clear to all that accountability and action are needed to ensure that trust in the industry does not erode, especially at such a crucial time when governments around the world are looking closely at the cryptocurrency industry.

Jed McCaleb Dumps Another 108.3 Million XRP, only 537 Million Left

The Ripple ex-CTO Jed McCaleb continues to sell lumps of XRP and converting the crypto to fiat. Several have noticed that he has been selling huge amounts of the token in the last seven days, with a total amount exceeding 108.3 million tokens through his “Tacostand” wallet.

Data obtained from XRPscan showed Jed McCaleb’s activities in the last seven days has made several transfers from his “Tacostand” XRP wallet. Notably, Jed McCaleb is also known as the co-founder of Ripple along with Chris Larsen, who is the current Chief technical officer of the company.

Half of the said transactions were done at 13 million XRP each, while the other half were 18 million XRP worth transactions. The 108.3 million transfers last week equates to over $50 million at the present price of the coin at $0.47. Reportedly, Ripple sent the ex-CTO a whopping 672,974,493 XRP tokens; this once amounted to around $270 million in fiat. 

Caption: Jed McCaleb continues his high-profile XRP dump, sold another 108.3M

This leaves McCaleb with 527 million XRP tokens left. The exact number is thought to be 536,996,596.086819 XRP based on the balance shown by the “Tacostand” wallet McCaleb owns. However, the crypto community believes that Jed McCaleb still has around three billion XRP left, and most onlookers and analyst expects that he will be selling all of it by the end of the year. 

McCaleb left Ripple in 2013 after certain disagreements with co-founder Larsen. He was entitled to compensations after helping found the company and serving as its CTO in its early days. Thus, Ripple agreed to pay out billions of XRP to McCaleb. 

However, this amount was sent to him in lumps to prevent him from dumping all his tokens and crashing XRP. Lucky for XRP Holders, McCaleb’s regular sales do not impact the exchange rate of the XRP. In comparison, the lawsuit from the SEC has been more impactful on the price of the cryptocurrency.

Ripple’s XRP Is a Great Crypto Choice for Investors, Says Analyst

Ripple’s XRP was once the third biggest cryptocurrency in terms of market capitalization, but it is still considered a micro-cap option. This is especially true if compared with Bitcoin and Ethereum. Regardless, several investors choose the XRP and appear to prefer its growth trajectory compared to its relatively larger pears. 

This may be due to the long-term growth prospects seem to decline for an investment of a formidable size. That’s why investors, especially the bullish ones, are recommended by experts to focus on smaller-cap players. Especially if they think that the companies they’ll invest in have a shot at growing their influence relative to others on their level. 

Caption: The XRP’s real-world uses stands out among peers, says analyst.

According to an analyst, one of the best choices for this is the XRP. This is because of its main goal to be a cryptocurrency that is designed for real-world use. As most digital coins have vague uses outside of their network, using them for payments is difficult, especially for larger currencies whose prices varies by hundreds to thousands each day. 

However, the analyst says that the XRP is immune to this because it was designed to handle payments. It especially solves a key problem in cross-border payments and allows for an almost instantaneous transaction process. 

Another key factor for this choice is RippleNet, XRP’s existing global payment platform. This is widely used globally and is gaining influence in recent years. This service greatly eliminates the hassles of transfers and fees, especially international transactions. RippleNet uses XRP and makes this process cheaper and more efficient. 

The analyst closes with a disclaimer that cryptocurrencies are still in a vague place today, but the XRP is still an attractive choice because of its real-world potential. He reiterates that the chances of succeeding after investing in XRP are more interesting than its peers.

The XRP Ledger’s Network Will Support NFTs Soon, Says XRPL Labs

According to XRPL Labs, NFTs are looking towards the XRP Ledger for their operations. Hubert Getruow of XRP Ledger Labs explained how the XRP Ledger is preparing to accommodate and support non-fungible tokens (NFTs) into its network. 

In an interview with “Crypto Eri”, Getruow said that when the XRP Ledger starts its facilitation of NFT transactions, the users will be able to transact, buy, and sell using XRP and other assets instead of just Ethereum. This comes in the time when leading NFT marketplaces like OpenSea or Rarible (RARI) require their users to use an Ethereum wallet. 

Getruow says that through this, users can pay with XRP because they will be using the XRP Ledger. Users would also be allowed to use the XRPL DEX, the decentralized exchange, and trade NFTs for XRP. These could be done with any fiat the user wants or any assets available to them at high speeds and no transactions costs. 

Caption: The XRP Ledger will support NFTs on its network soon.

Getruow explained that there are three ways to make an NFT through the XRP Ledger. One is to make use of an address “black hole” it later. This bars users from making another token. However, he explains that users may choose to make another token, requiring another account. 

Second, users may use one account and add their domain name to it as the XRP Ledger allows this function as an additional sign of trust for its users.  Getruow explains this is very handy for artists to protect themselves from plagiarisms.

Lastly, the XRP Ledger will allow for several tokens as a batch and be “blackholed” after the process is done. 

Despite NFTs being focused on art and entertainment in the last few months, he says that these can be made as proof of ownership in real life. He emphasized on the potential of these NFTs and the many cases they can be used in the future.

Ripple Fends Off $175M Investment Pullout from Tetragon

Ripple Labs’ 2019 funding round was supported by Tetragon in 2019. The British Fund Manager’s $200 million investment was previously applauded by crypto experts as the dawn of a new era for Ripple. Tetragon Financial Services led the Series C funding for the blockchain in 2019, and now, it wants its money back.

The round saw Ripple with a $200 million investment for its native currency XRP but with a clause. Now, those terms are haunting Ripple as Tetragon moves to pull out its investment after the United States Securities and Exchange Commission (US SEC) classified XRP as a security and sued the company for the unregistered securities offering and sales of the cryptocurrency.  

Caption: Courts ruled against Tetragon’s claim about Ripple breaching their agreement

The British fund manager Tetragon claims that the US SEC’s lawsuit has seen part of its agreement with Ripple Labs Inc. contravened and that Ripple should pay $175 million worth of stocks back. The case was filed in January 2021 before Delaware’s Court of Chancery. However, the case has since been dismissed. As per the court’s ruling, the inconclusiveness of the classification of XRP remains, and that Ripple is not obligated to fulfil the terms of the 2019 agreement until a conclusion is reached. 

Ripple stated its disappointment about the lawsuit from Tetragon and its decision to take advantage of the uncertainties surrounding the cryptocurrency industry in the US. Ripple viewed the lawsuit as an “opportunistic move” to profit from the current state of the crypto market in the country. 

The lawsuit from Tetragon came quickly after the United States Securities and Exchange Commission filed a lawsuit against Ripple Labs and two of its Executives. XRP was shortly delisted by major crypto exchanges in the US and MoneyGram’s announcement to halt its partnership with Ripple. 

Regardless, the XRP has seen a period of recovery in the past weeks. Most notably, it stayed green despite the whole crypto market seeing significant loses last week.

Bank of France Is Likely to Choose XRP Over Others for its CBDC

The central bank of France, Banque de France, has reportedly considered the XRP and Ripple to launch its Central Bank Digital Currency. The Central bank reportedly prefers the XRP over the top cryptos, Bitcoin and Ethereum. 

According to CPA Australia’s report, Ripple and XRP gained the attention of many central banks worldwide because of their network being centralized by nature. Simultaneously, the report emphasized the efforts made by the Reserve Bank of Australia, PBOC, ECB, and the Federal Reserve to issue a central bank digital currency.

Caption: Central Banks prefer the XRP over other tokens for CBDCs 

Notably, Ripple recently announced that it is currently designing a private version of the XRP Ledger (XRPL) to facilitate global central banks as they issue and manage CBDCs. Moreover, they reiterated that having the world’s first CDBC is inevitable. 

CPA Australia mentioned in their report that Ripple and its native coin enjoy several banks’ trust as a model for their CBDCs because of its highly-centralized structure. The central banks also prefer that it is based on a permissioned network where only limited nodes can validate transactions. This is unlike the way Bitcoin and Ethereum, which are decentralized and permissionless.

The report also mentions Ripple allowing the creation of new currencies. Lastly, Ripple developers can also decide the quantity of the currency’s supply, which is key for central bank operations.  Overall, Ripple and XRP function similar to how traditional banks work.

This preference comes despite the current lawsuit Ripple faces for allegedly selling XRP as an unregistered securities offering. The lawsuit was filed in December 2020 by the United States Securities and Exchange Commission, and a definitive conclusion isn’t expected to come earlier than August 2021. 

Regardless, XRP has reported a significant growth in the last few weeks. If this goes on, its recovery is expected to come very soon for the token.  

XRP investors’ Class Action Lawsuit to Play Big Role Versus the SEC

“Crypto Eri” discussed the news on the XRP community with two of the community’s most popular lawyers, John E. Deaton and Jeremy Hogan. Notably, Jeremy Hogan is well-known for sharing regular updates on the current state of the lawsuit filed by the United States Securities and Exchange Commission against Ripple. On the other hand, Deaton is the lawyer for the XRP community and seeks to file a class-action lawsuit against the regulatory agency. 

Early-Sunday, Deaton reported via Twitter that over 2,700 XRP Holders have already signed the letter of intent to join the class-action lawsuit against the US SEC. However, Deaton is still looking for individuals who owned and still own XRP, particularly those who’ve had the token before December 22, 2020. 

Caption: “Crypto Eri” interviews XRP community lawyers about Ripple’s current chances

Deaton is looking to invite all XRP holders worldwide and participate in the lawsuit. In the interview with “Crypto Eri”, the lawyer revealed the current fruits of his efforts and said that everything would come into focus by next week. However, he says the details are still vague for now. 

On the other hand, Hogan reiterated how important Deaton’s efforts are, especially for the Ripple vs. SEC lawsuit. He adds that Judge Analisa Torres needs to make a completed list of related cases and see how much the US SEC’s lawsuit has negatively impacted each XRP Holder. Hogan says this will further reinforce Ripple’s arguments. 

The two attorneys also discussed the possibility of the XRP finally finding regulatory clarity once the SEC litigation concludes. However, they agreed that this will might not happen despite how much the community wants it. Hogan pointed out Kik’s case against the US SEC as the reason for his conclusion. He reiterates how the SEC only gave Kik conditions to continue operating instead. 

Hogan sees this as the worst case for Ripple, while Deaton added that the classification of XRP would ultimately fall to the hands of the US Congress, not the US SEC.

XRP Poised for Upswing, Seems “Unaffected” by Legal Uncertainty

XRP is poised to continue its slow and steady recovery, as the two largest cryptocurrencies in terms of market capitalization also start climbing again.  Bitcoin, Ethereum, and XRP are looking strong as technicals are suggesting a bullish market. However, Ripple’s native coin’s climb is surprising as it seems unaffected by the legal uncertainties it currently faces.

This is because of the lawsuit filed by the United States Securities and Exchange Commission against Ripple and two of its executives after it classified the XRP as a security. However, this doesn’t seem to affect Ripple as much as it continues to expand its services to the East, where there is more regularity clarity for its native crypto coin. 

Caption: The XRP remains unaffected despite the legal battle Ripple Faces

Brad Garlinghouse, Ripple CEO, told Reuters that the lawsuit might have hindered their activities within the United States, but this has not affected their plans to expand toward Asia Pacific markets. He concludes his statement by emphasizing that there are still over 200 exchanges worldwide that allow their users to trade XRP, compared to the three or four US-based exchanges that stopped trading the crypto. 

Meanwhile, as Garlinghouse continues to trust the legal stability of Ripple and the XRP, the crypto is also poised for a major bullish impulse. Despite falling by four spots in market capitalization since the litigation started, the XRP seems to have developed an inverse head-to- shoulders pattern on its charts. 

The crypto is expected to break past this patterns, and a spike in buying pressure will allow the XRP to close above $0.66 and could lead to a significant upswing of 74% towards the $1.16 level. 

However, analysis says that failure to do so may result in the coin falling to the $0.39 support level. If XRP falls to this level, the coin’s bullish outlook may be invalidated, and a steep correction to $0.20 may happen.

Ripple Accuses the SEC of Being Unfair in their Lawsuit Against XRP

Ripple Labs Inc., the developer of the XRP cryptocurrency, recently claimed that the United States Securities and Exchange Commission is treating its native coin differently. The company says that the SEC is treating XRP as a security despite exempting Bitcoin and Ether from being regulated like a stock or bond. 

In a court filing on Thursday, Ripple stood its ground against the SEC, which had recently sued Ripple and two of its top executives Brad Garlinghouse and Chris Larsen, last December. The SEC claimed that the company and its top officers deceived its XRP investors by selling more than $1 billion worth of the virtual token without registering it first. 

 

Ripple claims that the SEC cannot regulate XRP because of its medium of exchange. The XRP is a virtual currency commonly used in international and domestic transactions and not a security, says Ripple. 

Ripple reiterates their point by saying that the SEC’s filing is based on an overreaching legal theory and amounts to picking virtual currency winners and losers because it exempted Bitcoin and Ether from the same regulations. 

Larsen’s and Garlinghouse’s attorneys have both written to Judge Analisa Torres in separate letters that their clients anticipate filing a motion to dismiss the revised complaint submitted by the regulatory agency.  

The case in question is the Securities and Exchange Commission v. Ripple Labs Inc., 20-cv-10832, U.S. District Court, Southern District of New York City. 

Since the case was initially announced to the public last December, the XRP has had an unpleasant few months. Major exchanges have delisted the cryptocurrency as they wait for the lawsuit’s conclusion. MoneyGram, a partner to Ripple, has also stopped using XRP for their cross-border transactions. 

The case isn’t expected to find a definitive conclusion until August of this year. 

Ripple Claims Crypto Exchanges Discussed XRP’s Status with the SEC

On Ripple’s recent filing on Thursday night, the company says that XRP market participants, such as cryptocurrency trading platforms, discussed the XRP’s regulatory status with the United States Securities and Exchange Commission (US SEC) before listing the asset to their platforms.

Different payments and remittances startups closely associated with Ripple’s native cryptocurrency XRP filed a response to the amended complaints submitted by the US SEC. The amended complaint from the agency alleges that Ripple violated federal securities laws.  

Ripple denied each of the claims the US SEC listed on their complaint paragraph-by-paragraph. This rebuttal is reminiscent of the strategy Kik, a messaging platform, used on its legal battle when it faced the US SEC two years ago.

Caption: Ripple responds to the amended complaint submitted by the SEC

A majority of Ripple’s recent response resembled their initial reply to the US SEC’s claims the company filed in early January. The most recent response is a reply to the newly amended claim that the US SEC filed mid-February this year.

As it had in January, the company said it reserved the right to file a motion to dismiss the complaint at another time. However, it continued to argue that XRP is not a security and didn’t violate any laws while selling XRP in the last eight years. 

The new response also leaned more towards the claims that crypto trading platforms had discussions with the US SEC about whether to list the XRP on their platforms. An unnamed company referred to as “Platform A” reportedly evaluated the XRP’s regulatory status with prior SEC guidance and actions. 

However, Ripple did not name the platform. Others speculate that this may be Coinbase as it is one of the most prominent US-based cryptocurrency exchange platforms that listed XRP in 2019.  Ripple said that “Platform A” was not told that XRP is a security by the US SEC, prompting the platform to list the cryptocurrency shortly after.