Ripple’s Legal Duel: The Zakinov Case and Its Impact on XRP Users

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In the world of cryptocurrency, silence can sometimes speak louder than words. As Mr. Huber, a crypto KOL observes, Ripple – the behemoth behind XRP – has been suspiciously silent about the Zakinov case, following a favourable XRP ruling.

This case involves alleged retail investors who bought and sold XRP through an exchange within days, alleging an investment in Ripple.

I find it interesting that Ripple has not filed anything in the Zakinov case since the positive ruling. After all, this class action is about alleged retail investors who bought on an exchange and sold a few days later, claiming that they had invested in Ripple. @JohnEDeaton1 Is… pic.twitter.com/AfU8CfnjNV

— Mr. Huber (@Leerzeit) July 25, 2023

“The question is, is Ripple waiting for something or are they unable to invoke the ruling at this stage of discovery?” Huber queried in his recent tweet.

The Zakinov vs. Ripple Case: The Spotlight on 75,890 XRP Holders

The case, better known as Zakinov v. Ripple, is a congregation of XRP holders alleging that Ripple has breached securities laws.

Among the plaintiffs, Bradley Sostak is contending for the lead position, encouraging the court to constitute a class of XRP holders who’ve bought, held, or sold the tokens at a loss. Notably, the plaintiff pool includes 75,890 participants aligning with Ripple’s counterargument against the U.S. SEC.

The SEC vs. Ripple: Ripple Wins

Judge Analisa Torres delivered a favourable ruling settling the classification question of XRP, declaring it is not a security, a big win for Ripple. However, the implications of secondary market transactions involving XRP remain unclear. Attorneys Jason Gottlieb and John Deaton shared insights, highlighting that while the court avoided directly addressing the issue, it may still have relevance.

An Unfinished Legal Symphony

As Mr Huber indicates, the Ripple vs Zakinov lawsuit is likely to continue for weeks, even months before it reaches a resolution. Even though Ripple got a favourable ruling from Judge Torres, the SEC will appeal.

In the Zakinov vs. Ripple case, the judge just agreed to extend the trial by about a month with trial starting on April 15 2024. The original lawsuit was filed in May 2018. That would be 6 years until trial would start at all. But the laws and rules are clear since 1933! It will… pic.twitter.com/7ud7VwMIEx

— Mr. Huber (@Leerzeit) March 24, 2023

The outcome of Ripple’s legal journey is crucial, not just for XRP holders, but the entire crypto world. As we wait for the final decision, remember this: the result will significantly shape the future of digital currencies. The end of this legal drama could change the rules of the game for everyone involved in cryptocurrency.