The XRP lawsuit has received a lot of attention recently, sparking debate in the broader crypto community. In a recent post on X, prominent lawyer James K. Filan revealed that the US SEC has formally filed an appeal against Ripple to the Second Circuit Court of Appeals. The official appeal also targets Ripple CEO Brad Garlinghouse and co-founder Chris Larsen, sparking debate among XRP enthusiasts about Ripple’s potential motives.
US SEC targets Ripple executives in official XRP lawsuit appeal
The US SEC has added Ripple executives Brad Garlinghouse and Chris Larsen to the latest formal appeal in the XRP case, raising eyebrows in the crypto market. The development came after an initial trial in which authorities were unable to prove the allegations against the two executives. Moreover, it comes on the heels of the US SEC’s recent filing of a notice of appeal.
Source: James K. Filan, X
Legal experts say the additions indicate authorities are reconsidering certain aspects of the case. Precisely, legal experts believe, it is targeting them over the dismissal of claims against management.
Source: James K. Filan
Meanwhile, former SEC attorney Mark Feigel suggested in a recent X post that the dismissal of charges against Brad Garlinghouse and Chris Larsen could be part of an appeal. This view is in line with that of pro-XRP lawyer Bill Morgan, who argues that authorities have agreed to dismiss individual claims against Ripple executives.
However, the fact that they were once again included in the appeal leaves room for speculation about the SEC’s strategy. Meanwhile, one user expressed dissatisfaction with the SEC’s tactics, noting that Garlinghouse is no longer directly involved in the XRP litigation.
“This is typical SEC action,” a user commented, suggesting the regulator was trying to “sprinkle” on its claims and change the narrative. Despite these frustrations, it appears that XRP holders should prepare for a lengthy legal process as the case unfolds in the Court of Appeals.
XRP price soars despite US SEC appeal
XRP price rose nearly 2% today to trade at $0.5337, while trading volume fell more than 32% to $1.2 billion. Notably, despite the US SEC’s appeal in the XRP case, the cryptocurrency hit a high of $0.5384 and a low of $0.5172 in the past 24 hours.
Meanwhile, amid recent appeals, controversy surrounding Ripple’s on-demand liquidity (ODL) system has also resurfaced in light of this legal battle. Some have questioned whether ODL Sales, which sells XRP to institutional customers, is involved in the allegations against Garlinghouse and Larsen.
Bill Morgan clarified that the sale of ODL is part of Ripple’s organizational operations, but not part of the accusations against its executives. Morgan also responded to user claims that ODL was at the center of the incident and dismissed suggestions that Garlinghouse and Larsen’s programmatic sales were related.
Meanwhile, Ripple’s CLO Stuart Alderroti hinted at a cross-appeal of the lawsuit in a recent post on X. Furthermore, the agency is also facing intense backlash from the crypto community over the appeal move, which was highly anticipated by the market.
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Rupam Roy
Rupam is a seasoned professional with three years of experience in the financial markets and has built a reputation as a meticulous investigative analyst and insightful journalist. He is passionate about exploring the dynamic nuances of the financial landscape. Currently serving as an associate editor at Coingape, Rupam’s expertise transcends traditional boundaries. His role includes breaking news, analyzing AI-related developments, providing real-time updates on the crypto market, and presenting insightful economic news. Rupam’s career has been marked by a deep passion for demystifying the complexities of finance and delivering impactful stories that resonate with diverse audiences.
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