U.S.-based crypto exchange Kraken sends notice to customers who could receive money or other benefits from the Zakinov V. Ripple lawsuit.
Following its legal victory in the Zakinov v. Ripple case, crypto exchange Kraken has started contacting its users who might receive monetary incentives or other benefits from the lawsuit if Zakinov triumphs over Ripple.
Kraken Wins in Zakinov V. Ripple Lawsuit
Recall that Kraken filed a motion to intervene in the Zakinov v. Ripple case in December 2023. As reported earlier, the exchange filed the motion in order to safeguard its users’ identity.
The plaintiff, led by Vladi Zakinov, secured a court order that mandated all U.S.-based exchanges to submit private trading information and identities of users who traded XRP on their platforms from July 3, 2017, to June 30, 2023.
Unexpectedly, Kraken intervened in the lawsuit, citing concerns about the risks of disclosing its users’ trading information. Interestingly, the court agreed with the exchange and prevented it from revealing its customers’ identity and trading data.
However, the court ordered Kraken to notify customers who traded XRP on its platform within the timeframe.
Dizer Capital Founder Among Potential Beneficiaries of Zakinov Lawsuit
Following the directive, Kraken recently contacted its customers, especially those who might receive monetary incentives from the lawsuit.
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The development was shared today by Dizer Capital founder Yassin Mobarak.
In a tweet today, Mobarak attached a screenshot of an email from Kraken, informing him about being on the list of potential beneficiaries who could receive monetary incentives from the lawsuit.
“Our records indicate that you have purchased XRP on Kraken between July 3, 2017, and June 30, 2023, which means that it may be within your rights to receive money or benefits that may come from the lawsuit, depending on the outcome,” an excerpt from the email read.
Commenting, Mobarak said he has always known that he would make money from his XRP holdings. However, he had no idea his dream would be achieved through a class action against Ripple.
Zakinov V. Ripple Case
Like the SEC’s case, Zakinov, who represents a group of XRP holders, alleges that Ripple, its CEO Brad Garlinghouse, and its subsidiary XRP II breached federal laws by offering and selling XRP to investors as an unregistered security.
The plaintiff alleged that he and many others were victims of Ripple’s securities law violations. He also seeks compensation for XRP investors who hold or sold the coin at a loss between July 3, 2017, and June 30, 2023.
In its defense, Ripple argued that XRP is not a security, adding that the coin is similar to Bitcoin, which authorities have deemed as a non-security.
Notably, the crypto payments company is expected to boost its defense by citing Judge Torres’ ruling in the SEC case, where she ruled that XRP in itself is not a security. In the meantime, the trial for the Zakinov lawsuit is slated to be held in October 2024.