The legal dispute between the U.S. SEC and Ripple might hurt European investors. Liechtenstein-based law Firm Scheiber Attorney at Law is offering investors to register for a collection procedure.
The legal dispute between Ripple and the U.S. Securities and Exchange Commission (SEC) has created quite some buzz in the crypto industry. The SEC says XRP may be an unregistered security. Calling on the Securities Act of 1993, the SEC claims XRP may have violated the Act.
Furthermore, the SEC also said Ripple’s Executive Chairman Chris Larsen and CEO Brad Garlinghouse might have aided the violations and might have made $600 million in personal profits from unregistered sales of XRP, reports BTC Echo.
The lawsuit could affect European investors
The SEC’s claims have already had devastating effects on Ripple. While it used to be the third most valuable cryptocurrency by market capitalization, prices dropped significantly after the legal dispute began. Also, partnerships were terminated, trading of XRP in the U.S. was suspended on some platforms, and some investors demanded their money back.
XRP has regained value, but the outcome of the lawsuit remains uncertain. Should Ripple be convicted, its price could drop immediately, which would have consequences for European investors as well.
What Scheiber proposes
Liechtenstein-based Scheiber law firm announced to represent the interests of European Ripple investors. Based on the “EU/EEA Prospectus Regulation 2017/1129” XRP could also have been traded in Europe without an approved securities prospectus, which could mean there might be liability claims against Ripple. At least that’s what Scheiber law firm believes. As Liechtenstein is also a member of the European Economic Area (EEA), the EU prospectus obligation applies here as well.
Scheiber Attorney at law recommends investors act quickly. “The limitation rules on European prospectus law are regulated at national level. Under certain circumstances, it could be argued on the basis of the SEC complaint that the commencement of the limitation period – also in Europe – starts on 23/12/2020, the date of the SEC complaint. In some cases, there are very short limitation periods, so that urgent action is sometimes recommended,” writes the law firm.
To be able to enforce any liability claims against Ripple, the law firm is preparing a collection procedure for which XRP owners can register here. Scheiber recommends action for a declaratory judgment because of a possible lack of securities prospectus. The lawyers will first try to reach an out-of-court settlement with the Californian FinTech, for example, by obtaining acknowledgments of liability or waivers of the statute of limitations.
Registering with Scheiber costs ERU 99. Scheiber says, “The large number of similar cases and injured parties would allow us to provide these out-of-court services for you at a reduced flat rate.”