The U.S. Securities and Exchange Commission (SEC) is requesting hundreds of millions of dollars to settle, according to the attorney for XRP investors
The U.S. Securities and Exchange Commission (SEC) is requesting hundreds of millions of dollars to settle, according to the attorney for XRP investors in the case against the SEC.
Attorney John Deaton claims in a long post on the social networking platform X that the SEC is seeking an astounding $770 million in “worth of flesh” in order to settle its case against Ripple Labs, a company it claims is trading unregistered securities.
“The SEC is enraged, humiliated, and demands $770 million in payment.
People should be aware that the punishment phase functions similarly to a second case, necessitating further depositions, interrogatories, demands for the production of emails, contracts, bank statements, and other records, as well as ODL (on-demand liquidity) transactions.
In an effort to significantly cut the $770 million, Ripple is attempting to eliminate ODL transactions as well as pay down staff members and other expenditures.
Deaton continues by stating that the outcome of Coinbase’s petition to dismiss, another cryptocurrency company that the SEC is using, will determine whether or not Ripple’s deal with the agency is approved.
“I don’t anticipate hearing from Judge Torres until late summer, at the latest. It is quite possible that an appeal in this case will not be filed for a full year. In my opinion, the SEC will be compelled to change course on its anti-crypto objective and negotiate a potential settlement with Ripple if Coinbase prevails in its MTD (motion to dismiss).
I foresee no resolution if Coinbase loses its MTD. The oral argument on the Coinbase motion is scheduled for January 17, 2024. It will probably be decided in 60–120 days.
But, Deaton asserts that Ripple will make every effort to lower the $770 million that the SEC is requesting, and he maintains his belief that the cryptocurrency company will succeed.
The SEC’s attempt to appeal the decision was turned down earlier this month by the same judge who decided that XRP retail transactions do not qualify as securities.
When the SEC withdrew its allegations of aiding and abetting against Ripple Labs executives last week, the price of XRP shot up to $0.52 at that moment.
As of this writing, XRP is selling at $0.54, down 2.5% from the previous day.
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