Recently, attorney John Deaton of Deaton Law Firm said that he is now on behalf of more than 6,000 XRP holders to become the third-party defendants in the SEC lawsuit.
Over 6,000 XRP volunteer holders as third party defendants in SEC lawsuit
In an announcement posted to Deaton’s Crypto-Law website on March 14, the lawyer and crypto enthusiast claimed that XRP holders have suffered a loss of $ 15 billion in the immediate days. following the SEC’s announcement of their lawsuit against Ripple Labs. In the two weeks after the initiation of the lawsuit, the XRP coin’s price fell 76% from $ 0.76 to $ 0.18.
The falling coin price was triggered in part by the major cryptocurrency exchanges’ decision to cancel XRP following the lawsuit. Many major exchanges including Binance.US, eToro, Coinbase, Bittrex, and OKCoin have removed XRP from their respective platforms. Investment services like Grayscale also liquidate XRP holdings, choosing to convert them into multiple Bitcoin (BTC), Bitcoin Cash (BCH), and Litecoin (LTC).
In the opinion of more than 6,000 XRP holders, the interests of coin holders were not fully represented in the securities lawsuit against Ripple Labs and its executives. Deaton’s argument is built upon Ripple Labs’s rejection of any securities breaches. Specifically, if XRP is not a security, as Ripple executives, Bradley Garlinghouse and Christian Larsen claim, then the efforts of the aforementioned executives will not affect the performance of XRP.
For this reason, Deaton, along with more than 6,000 coin holders involved, turned to intervene as a third-party defendant.
The profile clearly states:
“Given SEC’s own statements that this Court is the exclusive forum to hear claims regarding this matter, and Ripple’s position that XRP holders cannot rely on Ripple’s efforts as protection of their interests in this case and the nature of Ripple’s defense, the XRP Holders’ intervention is necessary.”
In January, Deaton, on behalf of XRP holders, filed a request for the SEC to differentiate between XRP sales by Ripple executives and XRP purchases made by the holders. the individual currency on the secondary exchange markets.
The filing also requires that any funds received from a Ripple payment transaction be transferred to a collective trust for use by XRP holders who have suffered losses as a result of the actions of the SEC. The request was dismissed by the SEC.
The story is not over yet
On March 11, Ripple executives Bradley Garlinghouse and Christian Larsen have rejected demands by the United States Securities and Exchange Commission to provide personal financial information as part of the ongoing investigation into a possible XRP sales securities violation.
The lawyers for the Ripple Labs co-founders requested a protective order regarding their personal information and called for the court to quash subpoenas issued to six of the defendants’ banks.
The banking institutions named specifically were SVB Financial Group, First Republic Bank, the Federal Reserve Bank of New York, Silver Lake Bank, Silvergate Bank, and Citibank.
Lawyers for Garlinghouse and Larsen argued that the SEC had overreached the proper breadth of its investigations when it asserted that the defendants had intermingled their personal finances with those of Ripple Labs.