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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.

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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.

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Shelly Melancon (Switzerland)

Shelly is a cryptocurrency enthusiast from Switzerland, she bought her first crypto in 2015 when it was way less popular then it is today and since 2017 she has been writing about cryptocurrency for online news portals. Shelly is the newest addition to the Tokenhell team, she writes mostly news and reviews related articles , stay tuned to her posts to stay up to date with the crypto world.

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