Amid the SEC’s lawsuit against Ripple, a California resident sued the BITJUX exchange. He accuses the site of profiting from the sale of XRP as a security.
In his lawsuit, Thomas Sandoval emphasizes that BITJUX sold the cryptocurrency XRP, knowing that the coin is a security, and this is a violation of California’s Fair Competition Act. The law protects consumers from unfair advertising and fraudulent business practices.
According to the plaintiff, the management of the exchange should have known that XRP was recognized as a security, as management was aware that all nodes of the network were under the control of Ripple.
According to Anderson Kill partner Stephen Palley, the lawsuit does not have sufficient evidence and does not pose a serious threat to BITJUX. However, it may be the first of a whole galaxy of such proceedings.
On December 31, the U.S. division of the largest cryptocurrency exchange Binance announced the suspension of trading with XRP. Now there is only one major exchange in the U.S. market, which did not impose restrictions on trading in pairs with XRP – Kraken.
Recall that on December 23, the U.S. Securities and Exchange Commission (SEC) filed a lawsuit against Ripple, accusing it of conducting an illegal sale of securities, which were XRP coins. Since then, a significant number of platforms have limited trading with XRP to Americans, including BITJUX.