In the ongoing lawsuit between the US Securities and Exchange Commission (SEC) and Ripple, Ripple has achieved significant success. The first trial of the case was held on May 21, and the second trial of the case was held on May 27. In the lawsuit, Ripple gave a new response to the SEC’s response to the “Lack of Due Process and Fair Disclosure” allegations.
Stating that the SEC filed a lawsuit against Ripple with a press release published on December 22, the SEC claimed that Ripple sold Ripple units illegally to investors in the US and around the world. According to the SEC, Ripple pays for the services it receives from people digitally instead of in traditional currency. Responding to these allegations, Ripple won an important victory in the second trial on May 27.
“NO ATTITUDE IS TAKEN”
Judge Sarah Netburn rejected the SEC’s offer to access the company’s legal advisory data regarding XRP’s regulatory status. Ripple strengthened its defense by saying that market participants were not warned that the cryptocurrency is considered an unregistered security by the institution. In the face of this, the judge did not react about the adequacy of the defense.
“The Court takes no stance on whether Ripple’s defense is admissible or worthwhile…”
On June 4, 2021, the response to the SEC’s defense against Brad Garlinghouse and Chris Larsen’s pleas to dismiss the case will become clear.
Stating that the process will proceed in this way, Filan stated that no decision has yet been made on the memorandum of understanding requested to obtain information from Ripple partners and foreign exchanges.
WHAT IS THE RIPPLE CASE?
The SEC, also known as the US Securities and Exchange Commission (SEC), in a press release issued on December 22, announced that it will sue Ripple Labs Inc. The SEC claimed in its lawsuit that Ripple was raising capital to finance the company’s business.
In the lawsuit filed, $1.3 billion damages is claimed, while Ripple is alleged to have collected funds since 2013 by selling digital assets known as XRP to investors in the US and around the world. In other words, according to the allegations, Ripple pays for the services it receives from people with XRP, which is digital instead of traditional currency.
JED MCCALEB CLAIMS ATTRACTED ATTENTION
Ripple investors also made an important claim on many social networks. The claim that Jed McCaleb, who has a large amount of XRP in his hand, regularly sells XRP in his hand has gotten attention on social media. It is among the allegations spoken backstage that Jed McCaleb was able to sell a certain amount, when he realized an increase in XRP value, because of his agreement with Ripple.
Jed McCaleb left Ripple last year and founded a new cryptocurrency, Stellar Lumens.
SEE ALSO: Ripple vs. Bitcoin: Which One Is A Better Alternative?
