YEREVAN (CoinChapter.com) – XRP price is actively influenced by the goings on Ripple’s legal front. Thus, the year-to-date 12% drop to $0.56 could also be related to the current events. One of the key issues for the XRP price action is the ongoing legal case, Zakinov vs Ripple, which has a court hearing scheduled for Jan 11, 2024. Here are more details about the case.
Zakinov vs Ripple Hearing Coming Up
The Zakinov vs Ripple case is a significant legal battle involving Ripple Labs and XRP holders. Initiated in May 2018, the lawsuit alleges that Ripple provided misleading information and illegally sold XRP as an unregistered security. The central claim of the plaintiff, Vladi Zakinov, is that he, along with many others, were victims of Ripple’s actions.
A crucial aspect of this case is the classification of XRP as a security. The lead plaintiff, Zakinov, argues that XRP is a security issued by Ripple, a claim that has significant implications for Ripple and the broader cryptocurrency market.
The lawsuit has experienced several postponements, with the trial expected to start on April 15, 2024. This case is separate but related to Ripple’s well-known legal conflict with the US Securities and Exchange Commission (SEC), which began in December 2020 over allegations of unregistered XRP security offerings.
In that case, Ripple scored a major victory in July 2023 when a US Federal Judge ruled that secondary sales of XRP did not constitute an offer of investment contracts.
The Jan 11th court hearing in the Zakinov vs Ripple Labs case is pivotal, as it addresses the motion for class notice approval. Additionally, the outcome of this case could significantly influence the SEC vs Ripple case, and vice versa.
Whales Bail Out As Trials Continue
In detail, the SEC and Ripple are working through remedies-related discovery, which is due to conclude on Feb 12, 2024. Following this, the SEC and Ripple will file remedy-related briefs, with a series of important dates set throughout early 2024 for these filings.
As mentioned, the XRP price has been sensitive to these legal developments. As of the latest updates, XRP experienced a downturn, dropping to $0.56 on Jan 8, influenced by the upcoming court date and general scrutiny in the US crypto space.
Additionally, XRP whales, addresses holding a large count of tokens, bailed on the asset, at least in the short term. According to on-chain tracker Messari, the $10 million and $1 million XRP holder ranks have receded since late December.
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