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- Opposing Ripple’s claims of the debated transactions being “predominantly foreign”, the SEC fails to procure details of even a single transaction violating the law.
- Brad Garlinghouse and Chris Larsen have filed motions to permanently dismiss the SEC’s seemingly groundless lawsuit.
- As per court orders, the SEC gets till May 14 to file and oppose the executives’ motions to dismiss in light of the recent developments.
The Ripple versus SEC lawsuit battle has recently seen some new developments. Ripple executives Brad Garlinghouse (CEO) and Chris Larsen (Executive Chairman) have filed twin motions to dismiss the U.S. Securities and Exchange Commission’s (SEC) lawsuit against them permanently.
SEC vs. Ripple: controversial lawsuit battle
In December, the SEC accused Ripple of misleading investors and selling unregistered securities, apparently their native token XRP, worth $1.38 billion. Denying the charges, Ripple questioned the legality of SEC’s petition, arguing if left to SEC, it’ll classify all virtual tokens as securities, drowning the crypto-market. Consequently, the regulator withdrew the one-time charges and filed another suit seeking the Ripple executives’ financial details, alleging they made a personal profit of $600 million from the illegit sale. The presiding judge did deny the motion to publish financial records. However, the co-executive duo still stands accused of partaking in the XRP sale, violating federal securities law.
SEC Fails to Back Claims with Proof, time & time again
Despite the defendant’s argument of the transactions in question being “predominantly foreign,” the plaintiff claims some XRP purchasers were from within the U.S. and yet fails to back their claims with details of even one such purchase. As such, the duo petitioned the court to dismiss their allegations of violating Section 5.
Former CEO, present Co-founder & Executive Chairman of Ripple, Chris Larsen’s attorney, stated that the SEC is barred from claiming monetary relief by the statute of limitations. Adding, the regulator investigated the enterprise and its executives, including their “trading records”, for “over two and a half years before filing its initial Complaint”, i.e. enough time and opportunity “to identify each offer and sale for which it seeks monetary relief,” and yet it “fails to allege any discrete XRP offers or sales.”
Legal Procedure and Schedule
Considering Ripple‘s latest filings, Judge Analisa Torres of the U.S. District Court for the Southern District of New York issued an order, based on which the SEC gets till May 14 to file and oppose Larsen and Garlinghouse’s twin motions to dismiss. Afterwards, the duo will get till June 4 to procure their reply to the agency.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
