With Lawsuit Dropped, Ripple Plans Partnerships
When it comes to lawsuits, it is hard to find any company behind a cryptocurrency which has been a subject to as many as Ripple Labs Inc has been a subject to.
The company has been accused of making XRP centralized and has even received a lawsuit stating that the company uses dishonest and illegal tactics for tricking investors and controlling the price of XRP.
Ryan Coffey, an XRP investor, had filed a lawsuit against Ripple Labs Inc earlier this year in May after allegedly suffering losses instead of gains on his investment. He led an entire group of upset investors to file the lawsuit against the company on May 3.
He issued “Order Denying Motion to Remand,” to ensure that the case doesn’t advance to Federal levels and instead remains in the lower courts of California. After suffering losses due to a bad investment, Ryan went ahead and demanded compensation for the financial losses he had faced due to Ripple Labs Inc. When he didn’t receive any compensation, he accused the company of manipulating XRP’s price to make profits and for damaging XRP investors.
Ryan said that the company promoted XRP through the media while using the media to make XRP prices rise and fall simultaneously. He accused XRP of being a security, and the company of ignoring the California Corporations Code regarding the securities laws.
The lawsuit also accused Ripple’s CEO, Brad Garlinghouse, to mislead investors by falsely explaining how his company’s products are being used. Finally, Ryan accused XRP of violating federal laws regarding securities and of not being decentralized.
As of now, the lawsuit against Ripple Labs Inc has been dropped by the US Northern District of California court.
Now out of the lawsuit, Ripple Labs Inc is planning to enter partnerships with major banks around the world. More than 100 banks all over the world have already partnered with the company by adopting its products such as xRapid and xCurrent.
The demand for xRapid and xCurrent rose up sharply due to its useful features such as low fees and fast transaction. Marjan Delatinne, Ripple Labs Inc’s Head of Banking said that the company has been in discussions with many German banks during the time they were in Berlin.
In a recent interview, when he was asked about the low partnership presence that the company has in Germany, he said that they “are in talks with many of [German] banks too.” This confirmed that the company indeed has partnerships in different parts of the world such as Japan, the US, and parts of Europe—as claimed by the company.
As of now, the only bank in Germany which is known with certainty to be in partnership with the company is Reisebank. In terms of asset size, the bank is the third largest in Germany with more than a 100 branches across the country. It is the central institution for more than 1000 cooperative banks, and roughly 12,000 of their branch offices.