Ripple’s XRP has not strayed far from controversy recently, with the company currently embroiled in a row that’s seen disgruntled investors accuse it of selling unregistered securities.
Now, bitcoin supporter and cryptocurrency analyst Tone Vays has weighed in on the lawsuit, branding Ripple’s XRP a “scam” and warning the U.S. Security and Exchange Commission (SEC) will bring “Thor’s Hammer” down on the company.
“The SEC is bringing Thor’s Hammer,” Vays said via Twitter. “Come at me XRP Army … your scam coin should never have existed.”
Vays also promised to discuss the ongoing lawsuit on the next episode of his podcast, Bitcoin Law Review.
Earlier this month, a new amended complaint against Ripple was filed with the SEC, using the commission’s own words to suggest Ripple illegally sold unregistered securities, and likely setting up a showdown between the company and unhappy investors.
Ripple must now file a response by mid-September.
“That filing will be the first time in the already-long history of this litigation that Ripple will substantively respond to the allegations around XRP,” said Jake Chervinsky, general counsel at crypto lending startup Compound Finance, told Coindesk, a bitcoin and cryptocurrency news website.
Ripple’s XRP is currently the third-largest cryptocurrency behind bitcoin and ethereum, with a market capitalization of $11.4 billion. Ripple controls some 60% of XRP tokens.
The XRP price is currently trading at year-to-date lows, down some 25% in 2019.
Ripple has been battling the lawsuit since May last year when investor Ryan Coffey filed the first of several lawsuits against Ripple, its XRP II subsidiary, and its chief executive Brad Garlinghouse.
Coffey was later joined by other Ripple investors Vladi Zakinov, Avner Greenwald and David Oconer, with Bradley Sostack being appointed as lead plaintiff.
Meanwhile, Ripple this week announced its investment arm, Xpring, gave a 1 billion XRP grant (worth around $265 million at current prices) to browser-based payment processing startup Coil for help building a community of “creators, consumers and strategic partners.”