SEC Wants $770 Million From Ripple — Lawyer Says SEC Is ‘Pissed and Embarrassed’

The U.S. Securities and Exchange Commission (SEC) reportedly wants Ripple to wage a $770 cardinal punishment for violating securities laws. Crypto lawyer John Deaton explained that the securities regulator is “pissed and embarrassed” aft it mislaid respective ineligible battles against the crypto firm.

SEC Wants $770M From Ripple

Crypto lawyer John Deaton elaborate connected societal media level X Wednesday that the U.S. Securities and Exchange Commission (SEC) is demanding a $770 cardinal punishment from Ripple for violating securities laws.

The SEC is pursuing this punishment aft losing respective ineligible battles against Ripple. Last week, the regulator dropped charges against Ripple CEO Brad Garlinghouse and co-founder Chris Larsen. Earlier this month, District Judge Analisa Torres rejected the agency’s bid to entreaty her ruling regarding XRP. Deaton opined:

The SEC is pissed and embarrassed and wants $770M worthy of flesh.

“What radical request to recognize is that the punishment signifier is similar a 2nd lawsuit requiring much depositions, interrogatories, requests for accumulation of documents, emails, slope statements, contracts, ODL [on-demand liquidity] transactions, etc.,” helium explained. “I don’t expect a last judgment, issued by Judge Torres, until precocious summer, astatine the earliest. It virtually could instrumentality a afloat twelvemonth earlier an entreaty is filed successful this case.”

The lawyer cited the lawsuit of LBRY, a blockchain-based file-sharing and outgo network, successful which the SEC initially sought $23 cardinal from the company. He pointed out: “It took 8 months of further litigation earlier the justice yet issued a good of $130K.”

Deaton besides anticipates that the result of the SEC’s suit against cryptocurrency speech Coinbase (Nasdaq: COIN) volition interaction the last magnitude that Ripple volition person to wage the regulatory body. He believes that if Coinbase wins its motion-to-dismiss (MTD) the SEC’s lawsuit, past “the SEC volition beryllium forced to pivot its anti-crypto docket and past enactment retired a imaginable colony with Ripple.” However, helium predicts “no settlement” if Coinbase loses its MTD.

Noting that the “oral statement connected the Coinbase motion” is scheduled for Jan. 17, 2024, helium said: “A ruling is apt 60-120 days later.” The lawyer emphasized:

Until past I deliberation Ripple volition walk tens of millions of dollars successful ineligible fees warring to greatly trim the $770M.

Deaton further stated that helium believes Ripple volition beryllium palmy successful drastically reducing the $770 cardinal punishment figure. “This isn’t a fraud case,” helium stressed. “The extremity is to scope an due good against Ripple for engaging successful transactions that qualified arsenic the merchantability of unregistered securities, but sold successful the discourse of a caller plus that different national agencies declared ‘virtual currencies.'”

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