Crypto firms have continued to see themselves at the center of controversy over how they have carried out their business, as regulators have continued to investigate thoroughly the nature of assets they offer. Last year, the U.S Securities and Exchange Commission (SEC) filed a lawsuit against Ripple for trading XRP as unregistered securities, acquiring $1.3 billion in the process.
The case is still in court, as Ripple is adamant that they are innocent and the financial watchdog is wrong and unfair with their accusations. However, Crypto exchange- Bibox, who found themselves in the same situation last year, have now seen the court rule in their favor.
The judge sights timing as the case for dismissal
Last year, a lawsuit was filed against the crypto exchange for selling six unregistered securities. Fortunately for the crypto exchange, the case has now been dismissed by a U.S district court, as the judge believes that the Plaintiff- Alexander Clifford, did not file the complaint within a year of the exchange trading the token.
Around June last year, Clifford filed a class-action suit against the crypto exchange, asking the court to request the exchange to refund him of his investments into their native token- BIX, and other unregistered assets. Clifford believes that the exchange had uncovered the truth about these digital assets to investors and had demanded the court to request them to give him and other investors their funds back.
Unfortunately for Clifford, and fortunately for Bibox, the case has now been dismissed, as the judge believes that the report of Clifford out of the one-year duration of trading unregistered securities. According to the judge, Clifford and Co. traded the token in December 2018, which was more than 12months from when he filed the complaints in June 2020.
Bibox off the hook, but Ripple not sure of their stand
According to the judge’s report- Denise Cote, he believed that the claims of Clifford had been exaggerated, as the Plaintiff lacked substantial evidence against the crypto exchange. Cote believes that Clifford has only traded the exchange’s BIX, and those do not have any right to discuss the nature of the other token offerings of the exchange on behalf of other investors.
According to Cote, none of the other investors have come out to claim that they suffered any form of injury or loss trading other tokens, and it will be against the law for Clifford to discuss their experience. Unfortunately, Blockchain firms like Binance, BitMEX, and Ripple still have cases to answer, as compliance continues to be the main issue with regulators.
While Bibox has now been left off the hook, the same cannot be said of Ripple, who are still having issues with the U.SEC. The U.S SEC believes that Ripple has violated its conduct by selling XRP as securities, and Ripple continues to stand on its initial position, sighting that it has done nothing wrong. Unfortunately, the case is still in court, and the fate of Ripple and XRP in the U.S continues to hang in the balance.