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- Lawyer John Deaton, claimed that The SEC is following a pattern to win the lawsuits against the firms.
- He explained the complete pattern of investigation and suing the firms.
The crypto ecosystem mostly trades in volatility, while the regulatories still looking for clarity over the crypto trading. In the SEC vs Ripple case, Deaton is an Amicus Curies. In a Twitter Thread, Deaton discussed the pattern that SEC is following. He referred to it as SEC Modus Operandi.
Major Spendings in the Legal Fees
On the legal fee charges, Deaton added that the Ripple CEO, Brad Garlinghouse, said that their firm will spend around $100 million in the legal fees. In addition, the CEO of LBRY, Jeremy Kauffman already spent one third of the fund over the legal fees.
Continuing in the list, Dragonchain spended approximately $2 to $4 millions in the legal fees, ahead of the case. Now, the firm is tolerating the lengthy and expensive legal battle against the SEC.
The XRP lawyer is against the extortion payment of BlockFi’s to the SEC chairperson. He said that the Zac Prince accepted to pay $100 million for the settlement of the pre suit. And Ripple got investigated by the commision for almost 30 months that too early as the filing was filed. Ripple also offered about the settlement but the SEC denied.
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The investigation over LBRY took almost three years before the lawsuit filing and no fraud. It also offered for the settlement, which includes dissolving the Corporation and selling the assets of the founder in the auction. Anything related to the registering LBC as a security, the SEC clearly refused.
Lastly, he recommended that the commision investigate the target for some years and then sue them when the firms own limited resources. This long process caused them millions in legal fees.
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.
