SEC’s $1.75M Fine Prompts Pro-XRP Advocate John Deaton to Demand Gensler’s Resignation

• The US SEC has been ordered to pay $1M in attorney fees and $750k in receiver fees and costs as the court sided with Debt Box in its ruling.
• The Ripple and XRP community believe the US Court will find similar misconduct in the ongoing lawsuit as the US SEC has the same commissioners and legal representatives.

A federal judge has ordered the United States Securities and Exchange Commission (SEC) to pay $1.75 million in fines for acting in bad faith. According to the court filings, the US SEC will pay attorney fees and costs related to the Digital Licensing firm that operated as Debt Box.

Specifically, the US SEC will pay $8,239 to Relief Defendant Calmes and Calmfritz Holdings LLC, $19,015 to defendant Mathew D. Fritzsche, $252,315 to the iX  Global Defendants, $153,365 to the FAIR Project, $34,259 to the DEBT Box’s lead counsel, Kunzler Bean & Adamson, $565,497 to another Debt Box lead Counsel Morrison Cohen, and $42,190 to defendant Brendan J Stangis. 

The US SEC was also ordered to pay $746,941 to the receiver by US Chief District Judge Robert J Shelby. 

Closer Look at the US SEC vs Debt Box Case

The US SEC filed the complaint against Debt Box on July 26, 2023, accusing the firm of violating federal securities laws. Additionally, the US SEC filed an ex parte application for a temporary restraining order (TRO), an asset freeze, and the appointment of a receiver. 

However, the defendants filed a motion to dissolve the TRO in September, which was upheld in the October hearing, by arguing that the US SEC made misrepresentations to the court. Earlier this year on March 18, the court concluded that the US SEC engaged in bad faith conduct.

Impact on SEC vs Ripple Case

The US SEC has lost a major crypto case that is similar to the Ripple lawsuit that focuses on XRP being security based on the Howey test. According to a popular lawyer seeking a US Senate position from Massachusetts, John E Deaton, the SEC Chair Gary Gensler should resign for intentionally acting in bad faith. Additionally, Deaton believes Senator Elizabeth Warren has enabled the US SEC Commission as she has done nothing at the Banking Committee.

https://x.com/johnedeaton1/status/1795574463150408126?s=46

The conclusion of the SEC vs Debt Box case is a major boost for the Ripple lawsuit, with Deaton convinced that the commission has been bullying the XRP community. As Crypto News Flash recently reported, the US SEC has been pushing for a $2 billion settlement, while Ripple has been arguing for a $10 million fine.

XRP Price Action

Amid the ongoing heightened altcoin volatility, XRP price has established a solid support level above 50 cents. The large-cap altcoin, with a fully diluted valuation of about $ 52.8 billion, has remained among the top ten most valuable digital assets by market cap despite the legal hurdles in the crypto bear market.

From a technical standpoint, XRP price against the US dollar has been retesting the apex breakout of a macro triangular consolidation, thus signaling an inevitable bull run. According to the latest market data, XRP price had gained around 6 percent in the past two weeks to trade at about $0.529 on Wednesday, May 29, 2024.