XRP Lawsuit: Why Ripple CEO Brad Garlinghouse & Chris Larsen Named In SEC Appeal?

As a seasoned analyst with years of experience navigating the tumultuous waters of the crypto market, I have grown accustomed to the ebb and flow of regulatory decisions and court proceedings. The latest twist in the XRP lawsuit, with the US SEC officially appealing against Ripple and its executives, is yet another chapter in this ongoing saga.


The XRP lawsuit has taken a new turn recently, which has sparked discussions in the broader crypto community. In a recent X post, renowned lawyer James K. Filan confirmed that the US SEC has officially filed its appeal against Ripple with the Court of Appeals for the Second Circuit. The official appeal also targets Ripple CEO Brad Garlinghouse and co-founder Chris Larsen, fueling debates among XRP enthusiasts over the agency’s potential motives.

US SEC Targets Ripple Execs In Official XRP Lawsuit Appeal

The U.S. Securities and Exchange Commission (SEC) has added Ripple’s top executives, Brad Garlinghouse and Chris Larsen, to their latest appeal in the ongoing XRP lawsuit. This move is causing curiosity within the cryptocurrency market. This action follows the initial trial during which the SEC could not substantiate its allegations against these two individuals. Moreover, this decision was made shortly after the SEC announced a recent filing of an appeal notice.

XRP Lawsuit: Why Ripple CEO Brad Garlinghouse & Chris Larsen Named In SEC Appeal?

As per legal analysts, this recent addition suggests that the agency aims to re-examine specific points in the case. Specifically, it appears to be focusing on the executives regarding the dismissal of charges brought against them, according to the legal expert’s viewpoint.

XRP Lawsuit: Why Ripple CEO Brad Garlinghouse & Chris Larsen Named In SEC Appeal?

In a recent post, former SEC attorney Marc Fagel posits that the dropping of charges against Brad Garlinghouse and Chris Larsen might be connected to an upcoming appeal. This perspective aligns with Bill Morgan’s stance, who is a proponent of XRP and claims that the agency agreed to dismiss personal claims against Ripple executives.

As a researcher, pondering the situation at hand, it’s intriguing to observe the reappearance of certain parties in the SEC appeal. This reoccurrence sparks curiosity about the SEC’s strategic decisions. Meanwhile, one user voiced their discontent with the SEC’s approach, pointing out that Garlinghouse is no longer a direct party in the XRP lawsuit.

The user observed that the Securities and Exchange Commission’s actions are consistent with their usual behavior, suggesting they might be overstating their assertions and changing the conversation’s focus. Unfortunately, it appears that XRP holders could find themselves on a long legal road as this case progresses through the appellate court.

XRP Price Soars Despite US SEC Appeal

Today, the price of XRP increased approximately 2% to reach $0.5337, while its trading volume decreased by around 32% to about $1.20 billion. It’s worth mentioning that during the past day, the crypto reached a high of $0.5384 and a low of $0.5172. Remarkably, this increase took place despite the SEC filing an appeal in the ongoing XRP lawsuit.

In the midst of the recent appeal submission, conversations about Ripple’s On-Demand Liquidity (ODL) system have once again emerged, given the ongoing legal dispute. Some are wondering if the sales of ODL, which involve XRP transactions with institutional clients, could be linked to the accusations against Garlinghouse and Larsen.

As a researcher, I’d like to clarify my understanding: Bill Morgan made it clear that Over-the-Counter (OTC) Digital Asset Sales, or ODL for short, fall under Ripple’s institutional operations. However, these sales were not implicated in the accusations leveled against Ripple’s executives. Furthermore, when addressing a claim suggesting that ODL was at the heart of the case, Morgan dismissed this notion, stating that it had no bearing on the programmatic sales led by Brad Garlinghouse and Ashton Larsen.

In a more recent update on X’s platform, Ripple’s General Counsel Stuart Alderoty subtly suggested a possible cross-appeal in the ongoing case. Additionally, this decision by the agency has been met with strong criticism from the crypto community, who had eagerly awaited the appeal’s outcome.

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2024-10-05 11:36