TL;DR Breakdown
- Ripple is facing another case filed by an investor who lost $48.
- The investor filed the case before a magistrate who seems to be his relative.
Ripple‘s issues continue to compound, as another investor has moved to file a lawsuit against the creator of XRP because he lost some money when he bought the crypto in November 2020. Tyler Toomey filed a case before a Magistrate in Florida, accusing Ripple and its CEO of making him loose $48.56. Interestingly, Tyler Toomey demands $5 billion in reparations from the accused.
What exactly happened?
Toomey happened to purchase XRP back in November 2020 when it was trading at $0.724, probably buying into the FOMO when the crypto market was preparing for a bull run. He bought a total of 135 XRP worth $97.80. However, things went south for his investment when the US SEC filed a case against Ripple, sending the XRP price crashing by almost 50%. Toomey claims to have cashed out his tokens for just $49.24, making a 50% loss in the process.
$400 to file Ripple lawsuit
A quick look at the website run by the Middle District of Florida reveals that filing a civil lawsuit costs $400 in fees. That’s around 8 times the amount Toomey lost in his investment. Toomey filed the case as a class action move, giving the notion that other investors affected by the SEC case could join in.
Besides the lawsuit covering this loss of investment, the plaintiff also wants the court to order an injunction against Ripple to stop the company from monetizing the billions of XRP it holds, saying that this could hurt investors.
The Magistrate is a relative
A more interesting fact about Toomey’s case is that he filed it before the said Florida Magistrate, who goes by the name Joel B. Toomey. It’s not yet clear whether Toomey decided to file the case before magistrate, who might be his relative, or whether it is just coincidental.
One section of Ripple and XRP’s fans seem to have been offended by Toomey move, while another section takes it as a joke. One user even offered to send a $200 compensation to Toomey in exchange for him dropping the lawsuit.
