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XRP Holders Blame US SEC for Causing ‘Multi-billions in Losses’

  • XRP holders blame SEC for causing ‘multi-billions in losses’.
  • Ripple won a slight reprieve from its myriad legal problems.
  • Ripple still faces lawsuits from XRP holders in California and Florida.

XRP holders seek to join the US Securities and Exchange Commission’s lawsuit against Ripple.

XRP Holders Join SEC Lawsuit as Third Party Defendants

Ripple (XRP) holders seek to join the US SEC’s lawsuit against Ripple as third-party defendants, as per new legal filings.

In a letter addressed to Analisa Torres, an US District Court Judge, XRP holders said, 

“the SEC’s intentional misconduct and/or gross negligence and gross abuse of discretion related to its allegations and claims regarding the Digital Asset XRP.”

Moreover, it is not only Ripple’s current distribution of XRP that is at issue, but XRP Holders faces issues. However, this is because most US exchanges have delisted and/or suspended XRP trading. 

In a March 14 XRP holders’ attorney John Deaton memorandum to Torres’ court in the Southern District of New York, Deaton excoriated the SEC for the XRP’s price collapse and resulting in multi-billions in losses.

Last December, the SEC filed a lawsuit against Ripple Labs. More so, alleging that its sale of XRP was an unregistered securities offering worth over$1.38 billion. Even more, the SEC also called Ripple’s CEO Brad Garlinghouse and executive chairman Chris Larsen as co-defendants for allegedly aiding and abetting Ripple’s violations and making $600 million in personal profits from their unregistered sales of XRP.

Following the SEC’s lawsuit in December, many cryptocurrency exchanges such as Coinbase and Kraken delisted XRP trading services for US crypto users. In addition, the price of XRP fell by over 60%, from close to $0.6 the month before to $0.25. According to CoinGecko, the XRP price is $0.43, at the time of writing.

Last week, Ripple won a slight reprieve from its myriad legal problems when a Delaware court rejected a request by Tetragon, an investment group headquartered in Guernsey, to redeem its Series C preferred stock in Ripple. 

Tetragon led Ripple’s $200 million Series C funding round in December 2019, and in January this year sued Ripple to reclaim its stock after the SEC filed its enforcement action. Vice Chancellor Morgan T. Zurn, who governed over Tetragon’s lawsuit against Ripple in the Delaware Court of Chancery said,

“XRP is no more a security after the SEC filed the enforcement action than it was before it”

Ripple still faces lawsuits from XRP holders in California and Florida.

Last week, Garlinghouse and Larsen forced back against the SEC’s request for up to eight years of their personal financial datas, calling it a fully inappropriate overreach.

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Ishwarya

A dedicated writer who shows her interest in writing all sorts of content about the cryptocurrency market in NewsCrypto. She is an enthusiastic reader and writer with passion for sharing crypto news and trends.

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