In December 2020, the United States SEC filed a lawsuit against Ripple Labs Inc. It decided to also sue the company’s CEO, Brad Garlinghouse, and co-founder, Christian Larsen. The SEC accused the company and its executives of selling the XRP crypto as an unregistered security. The SEC lawsuit against Ripple had many twists and turns and seemed endless. But, a recent event indicates that it is, finally, nearing conclusion.
Parties file motion for summary judgment
During a legal battle, it may happen that a party considers that the evidence is sufficient to reach a conclusion without a trial. In this case, summary judgments will be submitted to the court. Actually the SEC and Ripple have sought summary judgment. Each party filed a request: it is therefore a question of separate queries.
The claims were filed in federal court for the Southern District of New York. The SEC and Ripple want Judge Analisa Torres to rule without further delay on whether Ripple violated securities laws by selling XRP in the United States.
It should be noted that the SEC has sued many players in the crypto industry. And she won most legal battles. Separately, Ripple spent around $100 million on the lawsuit. This sum seems insignificant compared to the billions of dollars earned by the company through the sale of XRP.
The SEC lawsuit against Ripple is apparently drawing to a close. Cryptocurrency law expert and attorney Stephen Palley clarified that the allegations against Ripple are rather damning. According to him, considering the law and precedents, it is highly likely that Ripple will lose the lawsuit.
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