The U.S. Securities and Exchange Commission SEC wants $770 million from Ripple lawyer, the blockchain technology company behind the XRP cryptocurrency. The lawsuit, which has been ongoing for nearly two years, has taken a surprising turn as the SEC aggressively pursues what they believe to be ill-gotten gains. Ripple’s legal team, however, remains steadfast in their defense, asserting that the SEC’s motives are rooted in anger and embarrassment rather than a pursuit of justice.
The U.S. Securities and Exchange Commission (SEC) is seeking a substantial $770 million fine from Ripple over alleged violations of securities laws. According to crypto attorney John Deaton, the securities watchdog appears to be experiencing frustration and embarrassment as it faced setbacks in multiple legal skirmishes against the cryptocurrency company.
SEC Pursues $770 Million From Ripple
On the social media platform X, crypto attorney John Deaton shared on Wednesday that the U.S. Securities and Exchange Commission (SEC) is seeking a $770 million fine from Ripple for alleged securities law violations. This move by the SEC follows a series of legal defeats against Ripple. Just last week, the regulator withdrew charges against Ripple’s CEO, Brad Garlinghouse, and co-founder Chris Larsen. Additionally, earlier this month, District Judge Analisa Torres dismissed the agency’s attempt to challenge her decision concerning XRP. Deaton expressed his views, stating: The SEC is pissed and embarrassed and wants $770M worth of flesh.
It’s essential for people to grasp that the penalty phase resembles a secondary legal proceeding, demanding additional procedures such as depositions, interrogations, document requests, scrutiny of emails, bank records, contracts, and on-demand liquidity (ODL) transactions,” he elaborated. “I anticipate that a definitive verdict from Judge Torres may not surface until late summer at the earliest. It could realistically extend to a complete year before any appeals are filed in this case.
SEC’s Lengthy Legal Battles and Ripple’s Fate Tied to Coin Base’s Outcome
The attorney referred to the LBRY case, a blockchain-driven file-sharing and payment network, where the SEC initially sought $23 million in penalties. He highlighted that “It took an additional eight months of legal proceedings before the judge ultimately imposed a fine of $130,000.”
Deaton also foresees that the outcome of the SEC’s lawsuit against cryptocurrency exchange Coinbase (Nasdaq: COIN) will have an impact on the final amount Ripple will be required to pay the regulatory agency. He believes that if Coinbase succeeds in its motion to dismiss (MTD) the SEC’s lawsuit, it will necessitate the SEC to change its stance on cryptocurrencies and possibly engage in settlement discussions with Ripple. However, he predicts “no settlement” if Coinbase’s MTD is unsuccessful.
He further mentioned that the “oral argument on the Coinbase motion” is scheduled for January 17, 2024, with a likely ruling coming 60 to 120 days later. The attorney underscored: Until then, I think Ripple will spend tens of millions of dollars in legal fees fighting to greatly reduce the $770M.
Deaton also expressed his belief that Ripple will achieve a substantial reduction in the $770 million penalty amount. He emphasized, “This is not a case of fraud,” and stressed that the objective is to arrive at a fair fine for Ripple regarding transactions that were deemed the sale of unregistered securities but were conducted within the framework of a new asset classified as ‘virtual currencies’ by other federal agencies.
In the ongoing legal showdown between the SEC and Ripple, the SEC wants $770 million from Ripple lawyer has stirred significant debate in the cryptocurrency world. With the SEC seemingly seeking to assert its regulatory authority, the outcome of this case carries wide-reaching implications for the entire digital asset industry. Crypto lawyer John Deaton’s insights into the protracted legal process and the potential impact of the SEC’s case against Coinbase further complicate the situation. The ultimate judgment will determine the fate of Ripple and may also influence the evolution of crypto regulations in the United States. As the courtroom drama unfolds, the crypto community eagerly awaits a resolution.
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