Ripple (XRP) Lawsuit Appealed By SEC To Second Circuit Court Of Appeals

The U.S. Securities and Exchange Commission (SEC) has filed an appeal to the Court of Appeals for the Second Circuit, seeking to vacate a recent ruling allowing the lawsuit against Ripple Labs to continue.

The SEC had previously called for a speedy dismissal of the lawsuit filed by Massachusetts resident Ryan Coffey and others. The SEC argued that Mr. Coffey's investment did not constitute an investment agreement required for a federal securities class action hearing. Judge Jesse M. Furman ruled September 3 against the SEC's motion to dismiss, finding that his court had jurisdiction under 28 U.S.C. § 1337(b)(1).

The SEC appealed this decision on Sept. 18, asking the Court of Appeals for the Second Circuit to revoke Judge Furman's decision, allowing users to send and receive payments using blockchain technology. Bloomberg reported on Monday (Oct).

The SEC said it had taken significant steps to allow the lawsuit against Ripple Labs, adding that it would have made a different decision had it known about the wrongdoing by Ripple Labs executives before filing the lawsuit.