{"id":31540,"date":"2023-10-27T09:53:04","date_gmt":"2023-10-27T13:53:04","guid":{"rendered":"http:\/\/cryptocornercafe.com\/cafe\/?p=31540"},"modified":"2023-10-27T09:53:04","modified_gmt":"2023-10-27T13:53:04","slug":"sec-demands-700-million-settlement-from-ripple-pro-xrp-lawyer-reveals-next-steps","status":"publish","type":"post","link":"http:\/\/cryptocornercafe.com\/cafe\/2023\/10\/27\/sec-demands-700-million-settlement-from-ripple-pro-xrp-lawyer-reveals-next-steps\/","title":{"rendered":"SEC Demands $700 Million Settlement From Ripple, Pro-XRP Lawyer Reveals Next Steps"},"content":{"rendered":"

The US Securities and Exchange Securities Commission<\/a> (SEC) and Ripple Labs are expected to proceed to finalize a settlement<\/a> following the official dismissal<\/a> of the former\u2019s claims against Ripple\u2019s CEO Brad Garlinghouse and its co-founder Chris Larsen<\/a>. In line with that, pro-XRP legal expert John Deaton<\/a> has revealed how the settlement will play out.\u00a0<\/p>\n

A Settlement Isn\u2019t Going To Be Straightforward<\/h2>\n

In a post<\/a> shared on his X (formerly Twitter) platform, Deaton mentioned that he doesn\u2019t believe \u201cthere has been a single serious conversation regarding settlement\u201d between the SEC and Ripple alongside its executives. He said that the Commission is \u201cpissed and embarrassed and wants $770M\u201d as a fine for Ripple\u2019s violation of securities laws<\/a>.<\/p>\n

He further noted that the penalty phase isn\u2019t as straightforward as some may think, as it is \u201clike a second case\u201d but one that requires more depositions, interrogatories, requests for the production of documents, emails, bank statements, contracts, and ODL transactions.\u00a0<\/p>\n

The process is also made more difficult as while the SEC is insistent<\/a> on a $770 million fine<\/a>, Ripple wants to \u201cdrastically reduce\u201d the figure, as Deaton stated. To achieve this, Ripple will be looking to exclude the ODL transactions, which the SEC may claim are under institutional sales that violated securities laws.\u00a0<\/p>\n

Deaton<\/a> also alluded to the SEC\u2019s case against the decentralized content-sharing platform LBRY<\/a>, which took \u201ceight months of additional litigation\u201d before the Judge ordered that the platform pay a fine of $111,614 to the Commission. That case was also not straightforward as both parties had to file multiple briefs again, and depositions were taken.\u00a0<\/p>\n

How The SEC\u2019s Case Against Ripple Could Play Out<\/h2>\n

As to when a final judgment could come from Judge Analisa Torres<\/a>, Deaton doesn\u2019t foresee one until late summer \u201cat the earliest.\u201d With that in mind, he mentioned that it could take a full year before the SEC (or even Ripple) gets the chance to file an appeal<\/a> in this case.\u00a0<\/p>\n

The lawyer once again<\/a> mentioned the role that Coinbase\u2019s Motion To Dismiss (MTD) could play in this case and a potential settlement. He said that the SEC \u201cwill be forced to pivot its anti-crypto agenda and then work out a possible settlement with Ripple\u201d if Judge Failla grants the motion.\u00a0<\/p>\n

However, a settlement is unlikely if the crypto exchange were to lose its MTD. Coinbase<\/a> is asking the judge to dismiss the SEC\u2019s case against it, arguing that the Commission doesn\u2019t have jurisdiction over its activities. Hearing of Coinbase\u2019s oral argument is slated for January 17, 2024, with a ruling likely to come within 60 to 120 days after.\u00a0<\/p>","protected":false},"excerpt":{"rendered":"

<\/p>\n

The US Securities and Exchange Securities Commission<\/a> (SEC) and Ripple Labs are expected to proceed to finalize a settlement<\/a> following the official dismissal<\/a> of the former\u2019s claims against Ripple\u2019s CEO Brad Garlinghouse and its co-founder Chris Larsen<\/a>. In line with that, pro-XRP legal expert John Deaton<\/a> has revealed how the settlement will play out.\u00a0<\/p>\n

A Settlement Isn\u2019t Going To Be Straightforward<\/h2>\n

In a post<\/a> shared on his X (formerly Twitter) platform, Deaton mentioned that he doesn\u2019t believe \u201cthere has been a single serious conversation regarding settlement\u201d between the SEC and Ripple alongside its executives. He said that the Commission is \u201cpissed and embarrassed and wants $770M\u201d as a fine for Ripple\u2019s violation of securities laws<\/a>.<\/p>\n

He further noted that the penalty phase isn\u2019t as straightforward as some may think, as it is \u201clike a second case\u201d but one that requires more depositions, interrogatories, requests for the production of documents, emails, bank statements, contracts, and ODL transactions.\u00a0<\/p>\n

The process is also made more difficult as while the SEC is insistent<\/a> on a $770 million fine<\/a>, Ripple wants to \u201cdrastically reduce\u201d the figure, as Deaton stated. To achieve this, Ripple will be looking to exclude the ODL transactions, which the SEC may claim are under institutional sales that violated securities laws.\u00a0<\/p>\n

Deaton<\/a> also alluded to the SEC\u2019s case against the decentralized content-sharing platform LBRY<\/a>, which took \u201ceight months of additional litigation\u201d before the Judge ordered that the platform pay a fine of $111,614 to the Commission. That case was also not straightforward as both parties had to file multiple briefs again, and depositions were taken.\u00a0<\/p>\n

How The SEC\u2019s Case Against Ripple Could Play Out<\/h2>\n

As to when a final judgment could come from Judge Analisa Torres<\/a>, Deaton doesn\u2019t foresee one until late summer \u201cat the earliest.\u201d With that in mind, he mentioned that it could take a full year before the SEC (or even Ripple) gets the chance to file an appeal<\/a> in this case.\u00a0<\/p>\n

The lawyer once again<\/a> mentioned the role that Coinbase\u2019s Motion To Dismiss (MTD) could play in this case and a potential settlement. He said that the SEC \u201cwill be forced to pivot its anti-crypto agenda and then work out a possible settlement with Ripple\u201d if Judge Failla grants the motion.\u00a0<\/p>\n

However, a settlement is unlikely if the crypto exchange were to lose its MTD. Coinbase<\/a> is asking the judge to dismiss the SEC\u2019s case against it, arguing that the Commission doesn\u2019t have jurisdiction over its activities. Hearing of Coinbase\u2019s oral argument is slated for January 17, 2024, with a ruling likely to come within 60 to 120 days after.\u00a0<\/p>\n

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