XRP Lawsuit: US SEC Can Appeal Against Ripple, But Not Until Next Year

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Will Ripple XRP Secrets Get Revealed? SEC’s Win in Remedies Imminent? – Crypto News

Published

2 years ago

May 30, 2024

Dripp

The remedies phase in the Ripple vs US SEC lawsuit is nearly over and the parties now await Judge Torres’ ruling on the actual amount of fines Ripple has to pay for XRP sales to institutional investors.

The SEC’s partial win in the remedies phase is imminent as Ripple has to pay fines as per the July 2023 summary judgment, but the agency wants to harm Ripple’s business by revealing sealed details and seeking to stop sales to ODL customers through a permanent injunction.

Ripple Opposes Two Claims by US SEC

In the latest filing by Ripple Labs to two of the SEC’s arguments in opposition, the firm requested the court to keep details on financial statements, XRP sales to institutional investors, and other confidential documents sealed.

Ripple opposes the SEC’s claim that revealing the sealed information is critical for the measured penalty. The SEC seeks nearly $2 billion, while Ripple contests with a penalty of not exceeding $10 million. Ripple argued that revealing highly sensitive confidential financial information is unreasonable, and the firm’s request to seal some documents is valid as per a noted precedent.

Secondly, Ripple states that historical contracts are still relevant to the firm’s current business despite a change in how it sells XRP. After the court’s summary judgment, Ripple is no longer selling XRP through over-the-counter transactions.

Zach Rector, a prominent crypto media personality, in a video update on Ripple vs SEC, said the community may actually seek details on discounts Ripple offered to some institutional investors and other details in filings. However, he claimed that businesses have different deals with separate clients and an unsealed document could harm Ripple and its partnerships.

Rector also added that Ripple is not dumping XRP on investors. As the court ruled that XRP is not a security, “so the price at which Ripple sold XRP was not the same as the price at which Ripple sold the investment contracts.”

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Ripple Debunks FUD

Pro-XRP lawyer Bill Morgan commented on the latest reply by Ripple, especially debunking the FUD that Ripple dumps on retail investors and suppresses XRP price. The company offers no discounts to ODL customers and ODL-related sales don’t impact XRP price.

Ripple executives including CTO David Schwartz and other lawyers have explained that the ODL sales don’t significantly impact prices and there is transparency regarding escrow transactions.

As reported by CoinGape earlier, the SEC highlighted details and why they are relevant including amount of Ripple’s current assets (relevant to penalty amount), amount of recent sales (injunctive relief and penalties), revenues & expenses (disgorgement), and the size of discounts to some institutional investors (investor harm).

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XRP Price Losing Grip?

XRP price is trading sideways with the price currently trading at $0.52. The 24-hour low and high are $0.5136 and $0.5283, respectively. Furthermore, trading volume has increased by 13% in the last 24 hours, indicating interest among traders.

Deribit data shows the newly launched XRP options trading on the platform have calls as high as $1.1. Moreover, the latest options trading expiry data indicates a max paint price of $0.54, which indicates high volatility with odds of an increase in prices above $0.54.

Total XRP futures open interest indicates buying in the last few hours after initial jobless claims data came in positive to support market rebound. Interestingly, XRP futures OI on Bybit has now surpassed Binance, a major shift in the crypto market dynamics.

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