Latest Situation in XRP Ripple Case!
The latest cryptocurrency is one of the many in the US. In this case, we will handle the SEC’s Ripple case (Ripple lawsuit) for you and talk about the son of the case.
Significant Development for Ripple Case: 2 Documents Could Change Everything!
Stuart Alderoty, general counsel of blockchain firm Ripple, shared a development that could be critical to the Ripple case! Alderoty stated that these two documents from 2012 could prove that XRP is not considered an unregistered security, implying that it could completely change the course of this case!
Last minute for Ripple lawsuit: XRP can be proven not viewed as a security
In the explanations, Ripple general counsel explained that two documents from 2012 could be evidence that XRP is not seen as an unregistered security! As we reported earlier, the SEC, the US Securities and Exchange Commission, filed a lawsuit in December 2020 on the grounds that it sold XRP to Ripple as an “unregistered security”. So, being able to prove that
According to a statement to Fox Business, Ripple general counsel, 2012 He said the two documents could show that XRP is not seen as an unregistered security. As we reported earlier, the SEC, the US Securities and Exchange Commission, filed a lawsuit in December 2020, citing that Ripple had been selling XRP as an “unregistered security” for some time. So, showing that XRP is not a security is vital to the case.
XRP is not a security is critical to the case.
Alderoty stated that he thought it was unexpected that the US Securities and Exchange Commission objected to these legal statements. The Ripple advisor stated that while “strongly defending this case”, they are “looking forward” to people accessing the aforementioned 10-year-old documents. So, what is included in the documents of 2012?
Will the documents be made public?
According to the documents, in 2012, Ripple co-founder Chris Larsen, named as one of the defendants in the lawsuit, sought legal advice for XRP in the first year of the firm’s cryptocurrency. He received two notes from an unnamed law firm. On the other hand, the SEC is making allegations that Ripple was aware that XRP was an unregistered security and knowingly chose to trade illegally!
On February 17, US Judge Analisa Torres issued a court order to unseal these documents and dealt a blow to the SEC. The defendants strive to keep the said documents under seal, claiming that these documents “contain sensitive information”. It is claimed that if Ripple can be proven right, the firm’s fair warning defense could also support the case. On the other hand, assuming that Ripple is willingly breaking the law, the situation may not turn out to be very encouraging for Ripple!
What is the Ripple lawsuit?
As is known, Ripple (XRP), developed by Ripple Labs in 2012, is a payment network system and cryptocurrency. Ripple aims to enable large amounts of assets and money transfers to be made quickly, reliably and cheaply on the blockchain. Putting it that way, Ripple’s system can be compared to the Bitcoin (BTC) blockchain. But there is a very fundamental difference between Bitcoin (BTC) and Ripple (XRP): Ripple is not decentralized. Although XRP is traded on the blockchain, almost all ledgers are managed by Ripple Labs.
Ripple (XRP) was once the second most valuable cryptocurrency by market cap, after Bitcoin. Later on, it became the most valuable crypto currency with Bitcoin and Ethereum. However, that changed with the SEC filing a lawsuit against Ripple.
Ripple actually started grappling with legal problems in 2018. A class action lawsuit was filed against Ripple that year by investors. The plaintiffs allege that Ripple “created billions of XRP” and then made a profit by selling them “with an essentially never ending supply of initial coins (ICOs)”. On December 21, 2020, the US Securities and Exchange Commission (SEC) filed a lawsuit against Ripple and its two executives with a similar claim. This lawsuit has been ongoing ever since.
According to the SEC’s claim, Ripple’s co-founder, chairman and former CEO Christian Larsen and the company’s current CEO Brad Garlinghouse have raised $1.3 billion by selling XRP coins to investors through an unregistered digital securities offering to finance the company’s business. had raised capital. The SEC also claimed that Christian Larsen and Brad Garlinghouse earned about $600 million in personal income from the sale of XRP, which they considered unregistered.
The point of contention in the SEC’s Ripple case is whether Ripple is a security. According to SEC regulations, all securities must be recorded with commission. The SEC, which also considers the Ripple (XRP) cryptocurrency as a security, has therefore deemed the Ripple ICO unregistered. Ripple counters this by citing as an example that Bitcoin (BTC) and Ethereum (ETH) are not considered securities.
The latest situation in the Ripple case
The Ripple case is currently in the discovery phase. There have been various developments in favor of Ripple during the exploration phase, which will end on February 28, 2022. Most notably, Judge Sarah Netburn ruled that the SEC’s internal memorandum on Ethereum (ETH) and Bitcoin (BTC) be shared with Ripple on the grounds that it could contain important evidence.
Now SEC, until February 17, 2022; Ripple, on the other hand, will submit its defenses to the court until February 25, 2022.
It is not certain when the Ripple case will conclude, but it is expected to end in 2022.