The SEC filed a 1.38 billion dollar lawsuit against Ripple Labs executives Chris Larson and Brad Garlinghouse. The executives are charged with breaching Section 5 of the Securities Act by allegedly engaging in illegal securities trading. The SEC has also purported that the lawyers warned the Ripple executives about the legal ramifications of dealing in illicit trade.
However, thus far, the SEC has not been able to get access to the privileged information that could reveal the conversation between Ripple executives and their legal consultants. For the time being, SEC is fighting the counter-motion filed by Ripple Labs executives to keep the movants out from getting a seat in the court as third-party defendants. Meanwhile, SEC is also seeking to collect more evidence against Ripple labs from their foreign counterparts.
SEC Wins another Important Victory in Ripple Labs Case
Ripple Labs has claimed that if SEC is not going to make way for a more accepting and nurturing environment for cryptocurrencies, most of the enterprises in the industry will seek other conductive places. Ripple Labs is making deals left and right, targeting huge markets like UAE, China, Africa, and Egypt. One of the incriminated Ripple Labs executives has also claimed that even if Ripple Labs is wiped out of existence, XRP will remain in circulation.
It seems that SEC is not very happy with the open challenge. The regulatory agency has been busy sending out MOUs to different countries where Ripple has launched several business enterprises. Ripple Labs has attempted to shut down these attempts by painting them as an act of intimidation. However, a new court ruling has allowed SEC to go ahead with their evidence collection and remarked that no real signs of intimidation were found in the case.
John Deaton is Ready to Stake his Reputation over XRP Warranty
John Deaton is representing the 17,000 XRP holders in the United States. The attorney has been able to successfully obtain a seat for the six named movants as Amici Curiae. John Deaton himself has come forward as an XRP investor. A few days ago, Deaton claimed that he is ready to bet the legacy of his career over the legitimacy of the XRP token. Meanwhile, SEC is ready to deal with this new interference.
The regulatory agency has already filed a counter-motion to keep these movants away from the court. In the unlikely event that these movants get a seat at Ripple Labs lawsuit, SEC would file for at least a 4-months extension in lieu of discovery. The possibility that the future of XRP and Ripple Labs is bleak and dark anywhere in the world seems like a no-brainer.