While the blockchain startup industry charges against cryptocurrency projects.

Last week, the SEC sent a cease and desist letter to XRP II, a company that claims to be Ripple's successor. The letter claimed that XRP II violated securities laws by conducting an ICO and offering the token as a security.

The letter also states that Ripple (or at least one of its founders) was involved in running the business.

Soon after, XRP II sued the SEC for defamation, claiming that it had never been accused of running an ICO or being associated with Ripple.

In response, Bloomberg reporter Michael Riley wrote a commentary on how strange the lawsuit is because it seems like a terrible strategy to those who don't want to admit they've done something wrong.