SEC Takes Actions Against XRP Movants for Intervening in the Ripple Case

The legal action against Ripple Labs executives Brad Garlinghouse and Chris Larson has managed to make big waves in the crypto-verse. In the aftermath of the lawsuit, the native token of Ripple labs has suffered from a massive decline. Almost all U.S.-based crypto exchanges have delisted XRP, and most of them have dumped the digital asset to other exchanges. About 10,000 XRP holders in the USA alone have become disgruntled about the proceedings of this case and have been actively campaigning to get their voice through.

John Deaton, who is a class action expert attorney, has filed a letter on behalf of his fellow XRP holders that they should be given a representation in the ongoing case. However, the petition of the movants has been repeatedly denied by the presiding judge on the case Anelisa Torres. The XRP holders have not given up their efforts and keep on running active campaigns on social media platforms. Finally, Jorge Tenerio has decided to respond to the growing pressure of XRP movants on the case proceedings.

SEC Trial Attorney Warns XRP Holders to not Attempt Speculative Trading

Jorge Tenerio is the appointed senior trial attorney by SEC on the Ripple case. He has been handling the case since 2018 and has urged the court to stop the attempted speculative trading by XRP movants. Speculative trading refers to financial transactions at risk of losing value with an expectation of gain. According to Tenerio, the continuous interference of XRP holders would add ‘confusion’ and ‘unmanageable complexity’ to the case. 

It should be noted that XRP has been delisted from 54 different exchange platforms thus far. Deaton mentioned in his letter to the court that XRP holders aim to get the token to get relisted on different trade exchanges. Tenerio claims that if the court should allow the movants to have a seat, it would also have to make room for the class-action alleging parties that claimed that Ripple approached them for the sale of unregistered securities. This class-action against Ripple was headed by Valdi Zakinov and submitted to the court in 2018.

XRP Holders Expecting the Token to Double in Price

The prosecuting attorney on the Ripple case by SEC briefed the court that John Deaton and other XRP holders are expecting to get huge returns by intervening in the ongoing case. The SEC specifically used the FXstreet article as an exhibit to prove their point. In this article, Deaton claimed XRP prices could double up if the cryptocurrency could be reinstated on US-based crypto exchanges. However, Deaton’s rebuttal for SEC is that he and other XRP holders would have never lost any money without SEC filings’ issuance.

On the other hand, Ripple Labs have not objected to XRP holders’ intervention in the case. The company also issued a statement asking SEC authorities to reassure the XRP holders that their interests would not be harmed or compromised. The XRP holders include many retail investors who have betted their money on the controversial digital asset. 

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