SEC Bringing ‘Thor’s Hammer’ Against Ripple, Says Tone Vays

By Tyler Smith - Cryptocurrency Investor

Ripple is facing great heat from a strong Bitcoin advocate this week once it was reported that a lawsuit filed against the company had intensified. Ripple, which many believe controls the token called XRP has this time been accused by an investor named Bradley Sostack, who alleges the company sold unregistered securities. To sell XRP does not constitute as selling security by normal users.

According to Cointelegraph, the stakes against Ripple had escalated this week after Sostack corrected his original statement to add further guidance that came straight from the United States Securities and Exchange Commission (SEC).

It’s been reported that the latest pronouncements by SEC gave more credibility to Sostack’s argument. Now, a filing reveals that Ripple must respond to each one of those claims next month. Sostack claims that Ripple misled investors when looking to sell XRP and believes it was sold as an unregistered security.

Elsewhere, Tone Vays, the host and veteran trader of the Bitcoin Law Review podcast fired harsh shots at Ripple.

He wrote on Twitter, ‘The SEC is bringing Thor's Hammer’ and publicly referred to XRP as a scam token. Negative publicity could cause many to sell XRP in uncertainty. Vays also promised to go more in-depth about the lawsuit in his podcast’s next episode.

This isn’t the first time both Ripple and XRP have had to deal with controversy as it has been happening for some years now. There have also been conflicting reports about the company’s relationship to the token in the past and this renewed case against the coin’s classification has ultimately brought new infamy for the project.

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