SEC’s suit: XRP holders suffered $15B in damages – Ripple
Recall that some weeks ago, the united states SEC filed a lawsuit against XRP owners, Ripple Labs. Ripple Labs has filed a countersuit to the SEC’s modified case. In its response, Ripple Labs assert that the SEC is leaving out Bitcoin and Ether in its investigation while accusing them of similar offenses. Ripple states that its XRP is more secured, and it’s an improved version of bitcoin since there is more distributed control over the XRPL.
Source: Stuart Alderoty twitter
Effects of SEC’s Actions on XRP Holders
Ripple also confirmed that the SEC’s complaint has been hurting XRP owners as their holdings’ value has been significantly reduced. Hence, several exchanges, market makers and other market partakers no longer want to have any transactions that involve XRP. SEC’s charges have caused Tetragon and MoneyGram (MGI) to cease partnership with them. Major crypto exchanges, especially OKCoin, eToro, Kraken, Grayscale, and Coinbase in the country, no longer support XRP trades on their platform. A Coinbase client from St. Louis is suing the company for collecting transaction fees on XRP trades that never materialized.
According to the blockchain company, SEC’s allegation of unregistered securities from many years past has resulted in almost $15 billion in damages to firms and retail investors. Those same groups that the SEC was established to protect. It will be hard for retail investors to sell their XRP holdings.
XRP’s Proofs to Counter SEC’s Claims
Part of the countersuit also alleged the SEC to have made wrong assumptions about many infringements, such as claims that a significant portion of the XRP market was from sales of XRP. Ripple disagreed, stating that those XRP sales were not up to 0.5% of the total XRP transactions in the entire period. The document further stated that ripple labs’ business is more than just selling tokens as it has been around for many years before creating XRP. Even XRP’s activities have no direct connection with the company.
The 100-paged dossier concluded that Ripple refutes all SEC’s charges univocally, even went as far as calling the amended accusations “overarching.” Ripple’s lead counsel (Stuart Alderoty) shed more light on Twitter, tweeting that “we await more clarification about the SEC’s discussion with important XRP market players. Their counsels never told them that federal securities laws applied to XRP transactions despite asking for guidance when getting started.”
Stuart’s tweet’s timing seems fascinating as he did it barely 24 hours after Chris Larsen and Brad Garlinghouse (both of whom are Ripple executives) lodged a countersuit for the court to throw away SEC’s amended allegations against their company. Despite the SEC being in transition (Elad Roisman is acting in an interim capacity), its Cyber unit still built a case against Ripple, an action Ripple executives might consider as a personal vendetta against the company. However, it is unlikely that there would be a real trial (if there would ever be one) before spring because of the current Covid-19 pandemic and the court’s action’s languid pace. The SEC’s allegations are similar to those filed against several ICO companies such as Kik, Telegram, Paragon, and Airfox.
Tokenhell produces content exposure for over 5,000 crypto companies and you can be one of them too! Contact at info@tokenhell.com if you have any questions. Cryptocurrencies are highly volatile, conduct your own research before making any investment decisions. Some of the posts on this website are guest posts or paid posts that are not written by Tokenhell authors (namely Crypto Cable , Sponsored Articles and Press Release content) and the views expressed in these types of posts do not reflect the views of this website. Tokenhell is not responsible for the content, accuracy, quality, advertising, products or any other content or banners (ad space) posted on the site. Read full terms and conditions / disclaimer.
