Ripple Hit With Class-Action Suit Over `Never Ending ICO’

Ripple Labs Inc., the fintech startup that controls the world’s third-largest cryptocurrency, was hit by a lawsuit alleging that it led a scheme to raise hundreds of millions of dollars through unregistered sales of its XRP tokens.

The San Francisco-based company created billions of coins “out of thin air” and then profited by selling them to the public in “what is essentially a never-ending initial coin offering,” the class-action complaint filed Thursday in the Superior Court of California said. Ripple violated state and federal laws by offering unregistered securities to retail investors, the filing said.

The plaintiff, investor Ryan Coffey, ...