Zakinov v. Ripple: What’s the Issue?
Kraken, a U.S.-based cryptocurrency exchange, has chosen to protect the privacy of its users amid legal action demanding the disclosure of private XRP transaction data, including customer identities. Kraken has filed a motion with the goal of protecting its clients’ sensitive information, demonstrating its commitment to preserving user trust.
Following this news, Kraken has begun notifying customers who may benefit from the Zakinov v. Ripple lawsuit.
Zakinov v. Ripple: What’s the Issue?
The legal battle revolves around the classification of XRP as either a security or a currency. Plaintiff Zakinov alleges that Ripple marketed XRP as an unregistered security. Conversely, Ripple insists that XRP should be viewed similarly to other cryptocurrencies like Bitcoin and Ethereum. U.S. District Judge Phyllis J. Hamilton has certified it as a class action.
On July 13, Ripple won the lawsuit against the SEC, marking the first case in US history. The ruling declared that XRP is not a security, setting a precedent for the classification and regulation of digital tokens in the United States.
Kraken’s Involvement Creating Yet Another FOMO In Market
Kraken has contacted customers who may be eligible for potential monetary incentives arising from the lawsuit. Yassin Mobarak, founder of Dizer Capital, reported that Kraken had informed him about being on the list of potential beneficiaries eligible for the lawsuit’s monetary incentives.
Mobarak expressed surprise at the prospect of profiting from his XRP holdings through a class action against Ripple, a scenario he had not expected despite his confidence in the profitability of his XRP investments.
Ripple in response
Ripple is expected to strengthen its defense in the Zakinov lawsuit by citing Judge Torres’ ruling in the SEC case, which affirmed that XRP is not a security. The trial for the Zakinov lawsuit is scheduled for October 2024, and it will be intriguing to see what happens next after financial documents open. Stay tuned for more updates.
Hot Take
Kraken is standing up for user privacy by filing a motion to protect user information amidst legal proceedings involving XRP transaction data. Ripple has won a lawsuit against the SEC, setting a precedent for digital token classification in the United States. Kraken’s involvement in notifying potential beneficiaries of monetary incentives in the Zakinov lawsuit is causing a stir in the market. Stay tuned for more updates as these legal battles unfold.
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