XRP holders seek to intervene in SEC case against Ripple
John Deaton, founder of the Deaton Law Firm, prepared a motion on behalf of 6,000 XRP token holders to participate in the Ripple case.
As usual @CryptoLawUS is faster than me. Plz consider following if you haven’t. https://t.co/6ljeZAoG0I
— John E Deaton (@JohnEDeaton1) March 14, 2021
According to Deaton, investors’ interests are not fully represented.
“Ripple makes this point quite clearly, stating that XRP holders cannot reasonably rely on the company’s efforts,” according to the document.
The Deaton Law Firm also added that “a substantial element of Ripple’s defence” is the actual absence of any legal or fiduciary obligations to the token holders. Deaton described the above facts as sufficient grounds for investor intervention in the proceedings.
If the court grants the motion, XRP holders will be able to appear as third-party defendants to protect their interests.
Earlier, Deaton, on behalf of a group of investors, demanded that the U.S. Securities and Exchange Commission (SEC) amend the Ripple lawsuit and stop referring to the coin as a security. According to him, the regulator “deliberately and intentionally” inflicted multibillion-dollar losses on investors.
In March 2021, the SEC filed a motion to dismiss this filing. In the document, the agency stated that XRP holders had not provided sufficient grounds to abandon the position taken.
Earlier, in February the SEC filed an amended version of the complaint, placing the main emphasis on the actions of Ripple co-founder Chris Larsen and CEO Brad Garlinghouse. The latter called the regulator “regulatory overreach.”
Later the agency accused Ripple of attempting to evade liability for an unregistered $1.3 billion securities offering. In the SEC’s view, the company’s defence distracts the court with untenable arguments.
The regulator also requested data from six banks on the personal financial transactions of Larsen and Garlinghouse over the past eight years.
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