SEC Is Objecting To XRP Holders and Deaton From Participating In Court• July 21, 2022 3:06 pm • Comments
In the latest developments regarding the SEC vs Ripple lawsuit, it seems that the SEC is now trying to prevent XRP holders from aiding Ripple’s defense.
In addition to that, the SEC is also attempting to prevent John Deaton from going to any future court proceedings and has submitted an official “objection” in order to try to make this happen.
This latest action seems strange, but also expected given that it looks like the SEC is using all options that it has at its disposal to either delay the case or prevent itself from losing.
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This official objection basically opposes to considering XRP holders and Deaton as “amici curiae” which stands for participants of the court that help provide info in order to assist court decisions.
This is ironic given that XRP holders are likely the ones that can assist the court the most with information.
As the case against Ripple rages on, the SEC wants to see certain “friends of the court” in support of Ripple be barred from providing legal aid to the defense.https://t.co/1p1DYvPYxZ
— Michael Branch (@Michael63140627) July 21, 2022
CoinTelegraph shares the details:
Deaton has 3,252 affidavits signed by the token holders essentially stating that they are victims of the SEC’s lawsuit against Ripple as a result of lost profits.
Holders claim in the affidavits that they either did not assume legal responsibility for purchasing XRP, they bought the tokens for utilitarian purposes instead of investment purposes or they did not buy based on promises made by the company and its representatives.
However, in its objection to XRP holders, the commission claimed that they are attempting to operate outside of strictly legal issues. The SEC wrote:
“Movants do not propose briefing on legal issues. Instead, they wish to present arguments based on 3,252 affidavits ‘attesting’ to certain facts.”
The SEC is also apparently going very far in an attempt to prevent Deaton from participating in the case anymore.
To do this, they decided to pull up a YouTube video from 2021 that shows Deaton saying that he “might have to walk over and slap the [profanity] out of former SEC Chair Jay Clayton.”
The agency is then claiming that this is enough evidence to show that Deaton has made threats to the SEC and should not be allowed to participate anymore.
The fact that the SEC has decided to use a video of some trash talk as a reason to invalidate legal participation in the lawsuit certainly seems quite desperate.
SEC objects to the very people that they are there to protect – XRP holders – being involved in the Ripple case. You can’t make this up. Goldman @GaryGensler you’re a very bad little man!
— Matt Dobson 🇦🇺🦘 (@EddyDobson) July 21, 2022
The XRP holders and Deaton as amici are required to submit a public reply to the SEC’s objection by July 25.
Ripple is a blockchain company that issues the XRP token. The SEC has alleged in an ongoing court case that started in 2020 that Ripple and its executives Brad Garlinghouse and Christian Larsen sold XRP as unregistered securities.
Meanwhile, Deaton has claimed that the SEC has been inconsistent with its application of the law against Ripple, Garlinghouse, and Larsen. In a Tuesday thread on Twitter, the lawyer explained that if the SEC truly thought XRP was a security, it would have filed an injunction against Ripple and issued a cease and desist order against the two executives and Jed McCaleb from selling their tokens.
Ripple cofounder Jed McCaleb has sold nine billion XRP since leaving the company in 2014.
The SEC claims #XRP itself is a security and anyone who sells it is violating Section 5 of the Securities Act. The SEC claims @Ripple @bgarlinghouse & @chrislarsensf “enriched” themselves at the expense of investors and it is seeking $1.3B in disgorgement from these defendants. https://t.co/9nJ1iNroth
— John E Deaton (207K Followers Beware Imposters) (@JohnEDeaton1) July 18, 2022
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