Pro-XRP Lawyer Claims the SEC ‘Played Dirty’ in the Lawsuit Against Ripple: Details
TL;DR
- Ripple’s lawsuit with the SEC remains unresolved, with the agency accused of unethical tactics, including harassing the company’s CEO.
- Pro-crypto SEC leadership changes could favor Ripple, though the case’s complexity calls for cautious optimism.
The SEC Pushed ‘Ethical Limits’
The legal tussle between Ripple and the US Securities and Exchange Commission (SEC) is among the most intriguing topics in the crypto space. It all started in December 2020 when the agency sued the company, its CEO Brad Garlinghouse, and co-founder Chris Larsen, accusing them of illegally raising more than $1.3 billion in an unregistered securities offering by selling XRP.
The two entities have been throwing punches at each other in the following years, and despite the numerous developments and court rulings, the case remains ongoing.
According to John Deaton (an American lawyer representing thousands of XRP investors in the aforementioned lawsuit), the SEC “played dirty” and pushed “ethical limits” in the process. He claimed that the Commission’s attorneys “engaged in abusive discovery tactics, threatening and harassing Ripple’s overseas customers, investors, and partners.”
“Despite having the records of every XRP transaction made by Garlinghouse, the SEC attempted to subpoena all of Brad’s, and his family’s, personal financial records, including credit card statements. It was an attempt to bully, threaten, and coerce Garlinghouse (and Ripple) into submitting to the all powerful SEC,” he added.
Deaton, though, maintained that the company’s CEO endured the pressure, fought back “every step of the way,” and eventually won.
“I love America because two years and one Presidential election later, the future couldn’t look more bright for an industry, company and CEO,” the lawyer concluded.
It is worth mentioning that Deaton’s post was accompanied by a photo of Garlinghouse, the newly elected president of the USA, Donald Trump, and Ripple’s CTO Stuart Alderoty, who recently had dinner together. The XRP army interpreted this gathering as good news for the firm’s potential growth in the near future and the performance of its native token.
Earlier this month, Garlinghouse credited the substantial resurgence of the cryptocurrency market to Donald Trump’s win in the presidential elections. He said Ripple signed more US deals in the final six weeks of the year than in the previous six months, while 75% of the firm’s open positions are now based in America.
Has Ripple Won the Case?
While the company notched several partial court wins, a final resolution of the lawsuit has yet to be seen. Last summer, Judge Analisa Torres ordered Ripple to pay a $125 million civil penalty for violating federal securities laws through its institutional sales of XRP.
It is important to note that in 2023, the same magistrate found that the firm’s programmatic sales of XRP to retail clients through centralized exchanges did not breach the rules.
Ripple respected the decision and was ready to pay the fine. After all, it represented just a fraction of the $2 billion the SEC initially requested.
However, the watchdog officially appealed in October, delaying the outcome indefinitely. The upcoming changes in the SEC’s leadership, such as replacing Chairman Gary Gensler with the pro-crypto Paul Atkins, may result in a favorable resolution for Ripple. The XRP army, though, should have somewhat realistic hopes, considering the complexity of the entire legal process.
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