Bitcoin Manipulation Abatement filed a lawsuit against Ripple, accusing the company of defrauding investors and selling XRP as unregistered securities, as well as violating Federal laws.
The complaint was filed by lawyer Pavel Pogodin through the Puerto Rican company Consensus Law on behalf of Bitcoin Manipulation Abatement LLC. According to information from open sources, the organization was created in March last year by Pogodin himself, who is listed as a”local representative”.
According to court documents filed in the district court of Northern California, Bitcoin Manipulation Abatement claims that Ripple and its CEO brad Garlinghouse provided false information about XRP, misleading investors.
According to the plaintiff, this was done in order to increase demand and increase profits from XRP sales, which violates California securities laws, as well as legislation against unfair advertising and competition. Bitcoin Manipulation Abatement intends to recover compensation for its losses from Ripple.
“As ironic as it may sound, the situation looks as if the legal entity Bitcoin Manipulation Abatement was deliberately created to bring charges against Ripple and initiate a lawsuit,” wrote partner of the law firm Anderson Kill Stephen Palley (Stephen Palley) on Twitter.
Many of the arguments in the new Bitcoin Manipulation Abatement lawsuit coincide with other lawsuits that were previously filed against Ripple. In 2018, California resident David Oconer (David Oconer) accused the company of violating US securities laws and demanded damages for falling prices.
In the same year, investor Bradley Sostack filed a class-action lawsuit, but Ripple filed a motion to dismiss it, since Sostack could not prove the purchase of XRP during the ICO.
Recall that in November, Bitcoin Manipulation Abatement sued the FTX cryptocurrency derivatives exchange, accusing it of market manipulation and intending to recover $150 million from it.