The lawyer says that if the SEC is successful in suing Ripple, it could harm the other cryptocurrencies. The whistleblowers claim that several companies are receiving enough damage due to the SEC’s actions.
A group of XRP holders filed a motion in a United States District Court. The objective is for the judicial body to take part in the lawsuit filed by this entity, the Securities and Exchange Commission of that country (SEC), against Ripple due to the alleged sale of unregistered securities to finance the company’s activities.
The 36-page memorandum came to light on Monday, April 19, 2021, by attorney John E. Deaton on behalf of 6,000 holders of the cryptocurrency issued by Ripple. Through this movement, the claim states that many companies and individuals received damage by the SEC’s lawsuit against this company.
“The SEC puts the ownership of XRP holders at the centre of this case and places their interest against the holders’,” the motion states.
The lawyer explained the case through a Twitter account belonging to his company. The lawyer argues that “behind the judge’s back, the SEC violated the rules of the US civil court.” He also spoke concerning requests made by the government entity to foreign governments for information on Ripple.
SEC Lawsuit is an Unprecedented Event in the Cryptocurrency World
Deaton added that when they asked the Court to hear the claims of their defendants, they received insults and provocations from the SEC. Furthermore, the lawyer argued that, in his opinion, XRP is indeed a “promising digital asset” and not a security.
For the professional, “it is clear that those who use XRP have the right to intervene in this case to defend their interests.” The lawyer also maintains that these are “the very interests that the SEC decided to dismiss when it filed its December 2020 complaint.”
The SEC now has until May 3 to present arguments that could oppose the motion, and the attorney for the complainants will have the same chance to show the community’s case before a federal judge on May 17.
The SEC sued Ripple on December 22, 2020, to sell XRP to fund company activities. The SEC considers that asset to be unregistered security, and Ripple, for its part, maintains that it is a “virtual currency.”
Ripple would have raised around USD 1.3 billion since 2013 through the sale of XRP. Also, it would have used that asset to pay consideration such as labour services. Larsen and Garlinghouse are also a target of accusations of making unrecorded personal sales of the alleged security for a total of $ 600 million.
Since the SEC announced charges against Ripple, platforms such as Binance.US and eToro have suspended US trading of XRP. However, the cryptocurrency has been in a bull run for several weeks.
By: Jenson Nuñez
