According to Tone Vays, derivatives trader & YouTube content creator in a tweet on August 14, 2019, the U.S. Securities and Exchange Commission (SEC) is coming after Ripple Labs with Thor’s Hammer. Vays’ comment was made regarding the lawsuit from several members of the public against Ripple, the blockchain company behind XRP.
Members of Crypto Space File Lawsuits Against Ripple
Several people in the cryptocurrency community had filed lawsuits against Ripple since May 2018. However, the blockchain company was able to merge these suits in the California state court to form one case in the Federal court. The bone of contention of these plaintiffs is that Ripple had offered XRP as unregistered security for sale, illegally.
In a fresh update made to the lawsuit, the plaintiffs claim that XRP was sold as unregistered security which violates the registration provisions of federal and state securities laws. There are also claims that Ripple made false and misleading statements about XRP and falsely advertised the virtual asset.
The list of allegations goes on and on; however, the plaintiffs have tied their recent claims to SEC’s guidance for digital assets. Ripple has been ordered by the court to give an answer regarding the latest claim and has until September 19, 2019, to respond to the allegations. According to Jake Chervinsky, general counsel at Compound Finance, it is also the first time Ripple will speak in court substantively about the matter.
Tone Vays Warns SEC is Coming After Ripple
Tone Vays, on the other hand, while making comments about the lawsuit said the SEC is coming after Ripple with Thor’s Hammer. He further revealed that he would speak more about the matter in his Bitcoin Law Review podcast. Vays also called for comments from loyal followers of XRP stating that: “Come at me $XRP Army “of the Brain Dead” your scam coin should never have existed #Ripple Corp!”
As would be expected, not very many found Vays remarks very welcoming. A user, for instance, said Ripple has been fostering the adoption of cryptocurrency and its real-world usage. As such, Vays needs to be more appreciative of what the company is doing instead of always putting them down. Another opined that XRP would soon overtake Bitcoin to become the first cryptocurrency to receive regulatory approval.
Nonetheless, there were still certain users who ultimately agreed with Vays. According to them, Vays is right, and Ripple deserves what it has coming. Another said even if XRP succeeds to be adopted by banks globally, it could still crash as soon as fiat crashes. In their opinion, Ripple has tied itself too much to fiat.