The United States Securities and Exchange Commission has decided to stop any form of attack against the two barons of Ripple, Brad Garlinghouse and Chris Larsen. For John E. Deaton, the pro-crypto lawyer and defender of XRP holders, the American regulator had no chance of winning this trial which began in December 2020. Details!
John Deaton gives SEC no chance of winning
The SEC, which saw its appeal request in the case against Ripple rejected, recently decided to end its attacks against the company issuing the crypto XRP and its managers. A situation that does not appease the cryptocurrency investor and founder of Crypto Banter, Ran Neuner.
“ Why is the crypto community celebrating the SEC’s withdrawal from the Ripple case?
All it means is that the SEC can now appeal the case sooner. Previously, she had to wait for the case to end, but now that she has dropped it, she can appeal immediately.
Be smart! »
Warned by such a degree of skepticism, John E. Deaton, lawyer for XRP holders, provided some clarification via a post on X (formerly Twitter).
First, he began by dismissing the thesis of a possible comeback of the SEC.
“ Although Ran is correct that an SEC appeal will happen sooner because the SEC chose to dismiss the case against Brad Garlinghouse and Chris Larsen (because the April 2024 trial will not happen) , it is incorrect to say that the SEC can appeal immediately. »
At the end of his presentation, he said:
“ There will be no immediate appeal. Finally, the SEC did not dismiss the case because it wanted to appeal more quickly. She dismissed the case becauseshe had no chance of winning and that the list of subpoenas for certain people was going to be interesting, to say the least. »
What to expect from now?
For John Deaton, this matter is ripe for a crucial step: the repair phase. In fact, the SEC expects Ripple Labs to face a hefty $770 million fine for violating federal securities laws in its sales of XRP to institutional investors.
Deaton did not fail to mention the LBRY affair as an illustration. In fact, it was returned on November 7, 2022.
“ The final judgment which became subject to appeal was rendered on July 11, 2023 – EIGHT MONTHS after the decision. The appeal was filed on September 7, 2023. »
It took eight months to carry out additional research (interrogations, requests for production of documents such as bank statements, depositions, etc.), said U°Today. Also, brief filings and oral argument will follow this.
And then, the SEC started by demanding a fine of 23 million euros. After 8 months of argument, the SEC finally revised this amount to $130,000.
Above, we mentioned the tidy sum of 770 million dollars for the case of Ripple. The SEC, which felt embarrassed in this matter, will not give up. Unless Ripple argues that “ODL transactions should be exempt, as should legitimate business costs (salaries, advertising, travel, insurance, etc.).
The crypto community has always closely monitored the Ripple vs SEC case. The XRP issuer’s victory is their victory. His defeat, however, remains inconceivable.
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