Ripple’s Top Lawyer Makes Important Clarification as Legal Battle with SEC Rages On

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Stuart Alderoty, Ripple‘s top lawyer, has corrected misinformation circulating on social media by explaining that there is no scheduled pretrial conference with the U.S. Securities and Exchange Commission taking place on April 16th.

According to Alderoty, the SEC has dropped all charges against Ripple’s CEO Brad Garlinghouse and co-founder Chris Larsen, meaning the conference will not go ahead due to this development. Previously, the SEC had accused these two executives of helping Ripple in its infringement of securities laws.

A well-known figure in the XRP community previously posted an outdated schedule entry; this entry was established prior to the dismissal of charges in October.

Based on Alderoty’s statement, Ripple is anticipated to submit their response to the SEC’s penalty imposition by April 22. In turn, the SEC is required to respond to Ripple’s submission by May 6.

According to U.Today’s report, the SEC is seeking over $2 billion in penalties from Ripple. The SEC justifies this substantial amount based on Ripple’s alleged misconduct. Furthermore, imposing significant fines aims to discourage further breaches of securities laws within the crypto sector.

Garlinghouse promptly criticized the SEC’s demand as an excessive regulatory attempt, while Alderoty charged that the agency aimed to intimidate his business and the sector as a whole. According to Lee Hepner, senior legal advisor at the American Economic Liberties Project, Ripple found itself in a vulnerable position.

In the previous year, a court decision stated that XRP transactions carried out via secondary markets weren’t considered securities deals. Nevertheless, certain financial experts predict that the Securities and Exchange Commission (SEC) could strongly challenge this judgment.

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2024-04-16 23:38