In a modified class action case, Ripple CEO Brad Garlinghouse is accused of quietly selling 67 million XRP while heavily promoting the coin.

According sue Jurisdictions, which allege that Ripple has sold XRP as unregistered security since 2013, Brad Garlinghouse has publicly stated that he was in a “very, very long” position in XRP in 2017, when in fact he sold large chunks of it.

Brad Garlinghouse’s representation that he will continue to hold XRP for a very, very long time, that is, it will be “HODL” for Ripple, in order to achieve long-term gains.

But he was a liar, according to the lawsuit when he stated that he held the coin, as throughout 2017, “Brad Garlinghouse” sold millions of XRP to various cryptocurrency exchanges.

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An XRP blockchain review indicates that Garlinghouse sold at least 67 million XRP in 2017 and that he sold any XRP he obtained from Ripple within days of receipt.

Garlinghouse was not holding XRP for long or aiming for long-term gains as he claimed.

Instead, he was dumping XRP on retail investors in exchange for the dollar and other cryptocurrencies.

The defendants had exclusive knowledge of material information related to Brad Garlinghouse’s XRP sales, but omitted it from their offerings to investors.

Had investors known the truth about Brad’s XRP sales, it could have dramatically changed the overall mix of information available to them.

Accordingly, Garlinghouse’s statement was a misrepresentation and omission of a material truth for investors.

Lead plaintiff Bradley Sostak initially filed a lawsuit in 2018, claiming that the San Francisco-based company illegally sold him XRP in violation of federal securities laws and US laws.

Last month, a federal judge ruled that the lawsuit would go ahead, rejecting Ripple’s request to dismiss it on the grounds that Sostack took too long to file the case.

Ripple says that XRP exists independently of the company and is not a guarantee because investors in the digital assets are not shareholders in Ripple in any way.

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Ripple also argues that listing XRP as collateral could destroy the third largest cryptocurrency market and wipe out thousands of investors.

Ripple explained the following:

If SOSTAC is allowed to defy the XRP rating belatedly, it will not only threaten to remove XRP’s usefulness as a currency, but it will overturn and threaten to destroy the large-scale XRP market, a market that has jeopardized more than $500 billion in circulation over the past two years…

It would also likely erase the value held by thousands of XRP holders around the world.

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