Pro-XRP Lawyer Claims SEC ‘Played Dirty’ in Lawsuit Against Ripple: Details

TL;DR

Ripple’s lawsuit with the SEC remains unresolved, with the agency accused of unethical tactics, including harassment of the company’s CEO. Pro-crypto SEC leadership changes could favor Ripple, though the complexity of the case calls for cautious optimism. SEC Pushed ‘Ethical Boundaries’

The legal fight between Ripple and the US Securities and Exchange Commission (SEC) is among the most intriguing topics in the crypto space. It all started in December 2020 when the agency sued the company, its CEO Brad Garlinghouse and co-founder Chris Larsen, accusing them of illegally raising more than $1.3 billion in an unregistered securities offering by selling XRP.

The two entities have been punching each other in the following years and, despite the numerous developments and court rulings, the case is still ongoing.

According to John Deaton (an American lawyer representing thousands of XRP investors in the aforementioned lawsuit), the SEC “played dirty” and pushed “ethical boundaries” in the process. It claimed that the Commission’s lawyers “engaged in abusive discovery tactics, threatening and harassing Ripple’s customers, investors and foreign partners.”

“Despite having records of every XRP transaction made by Garlinghouse, the SEC attempted to subpoena all of Brad and his family’s personal financial records, including credit card statements. It was an attempt to harass, threaten and coerce Garlinghouse (and Ripple) into submitting to the all-powerful SEC,” he added.

Deaton, however, maintained that the company’s CEO withstood the pressure, fought “every step of the way” and ultimately won.

“I love America because two years and a presidential election later, the future couldn’t look brighter for an industry, a company and a CEO,” the lawyer concluded.

It’s worth noting that Deaton’s post was accompanied by a photo of Garlinghouse, US President-elect Donald Trump and Ripple CTO Stuart Alderoty recently having dinner together. The XRP army interpreted this meeting as good news for the company’s potential growth in the near future and the performance of its native token.

Earlier this month, Garlinghouse credited the substantial resurgence of the cryptocurrency market to Donald Trump’s victory in the presidential election. He said Ripple signed more deals with the United States in the last six weeks of the year than in the previous six months, while 75% of the company’s open positions are now in America.

Has Ripple won the case?

Although the company won several partial court victories, a final resolution of the lawsuit has yet to be seen. Last summer, Judge Analisa Torres ordered Ripple to pay a $125 million civil penalty for violating federal securities laws through its institutional sales of XRP.

It is important to note that in 2023, the same magistrate found that the company’s programmatic sales of XRP to retail customers through centralized exchanges did not violate the rules.

Ripple respected the decision and was willing to pay the fine. After all, it was only a fraction of the $2 billion the SEC initially requested.

However, the watchdog formally appealed in October, delaying the outcome indefinitely. Upcoming changes in SEC leadership, such as the replacement of chairman Gary Gensler by pro-crypto Paul Atkins, may result in a favorable resolution for Ripple. The XRP army, however, should have somewhat realistic hopes, given the complexity of the entire legal process.

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