Ripple Executives Celebrate Dismissal of SEC Lawsuit
Ripple Labs Chief Legal Officer Stuart Alderoty expressed his joy over the dismissal of all charges against Ripple executives in an ongoing lawsuit filed by the Securities and Exchange Commission (SEC). He took to Twitter to announce the news, stating that the SEC had made a grave error in targeting Brad Garlinghouse and Chris Larsen personally, and now they have surrendered by dropping all charges against them.
SEC to Dismiss Lawsuit Against Ripple CEO and Co-founder
The SEC has decided to dismiss its lawsuit against Ripple CEO Brad Garlinghouse and co-founder Chris Larsen regarding their alleged involvement in illegal securities sales. The news of the dismissal caused XRP to rise by 3.7%, reaching $0.51 according to CoinGecko.
In a recent filing, the SEC stated that it plans to meet with Ripple to discuss the appropriate remedies for Ripple’s Section 5 violations related to its Institutional Sales of XRP. The SEC requested until November 9, 2023, to propose a briefing schedule or seek one from the court if an agreement cannot be reached.
The SEC declined to comment on the matter.
The Background of the Ripple Lawsuit
A legal battle between Ripple and the SEC began in 2020 when the agency accused Ripple of unlawfully raising $1.3 billion through the sale of XRP. In July, New York District Court Judge Analisa Torres ruled that some of Ripple’s programmatic sales of XRP did not violate securities laws due to a blind bid process. However, she determined that other direct sales of the token to institutional investors were indeed securities, resulting in a partial win for the SEC.
In a recent development, Judge Torres rejected the SEC’s request for an interlocutory appeal, stating that it would not significantly impact the ultimate outcome of the litigation.
Despite the dismissal of charges against Garlinghouse and Larsen, other SEC-related charges related to the offer and sale of XRP are still pending.
Ripple Executives Respond to the Dismissal
Ripple Executive Chairman Chris Larsen expressed his satisfaction with the legal victory, stating that they have been vindicated and redeemed. Larsen described the SEC’s attempt to stifle crypto in America as a flawed and politically motivated attack. He further emphasized that they should not have been forced to defend themselves against such an ill-advised lawsuit.
Hot Take: Ripple Executives Celebrate Victory in SEC Lawsuit
The dismissal of all charges against Ripple executives in the SEC lawsuit has brought great relief and celebration. Stuart Alderoty, Ripple Labs’ Chief Legal Officer, expressed his joy on Twitter, emphasizing that this was a surrender by the SEC rather than a settlement. The SEC’s decision to drop the charges against Brad Garlinghouse and Chris Larsen is a significant development in the ongoing legal battle between Ripple and the SEC. While other charges related to XRP sales remain, this dismissal marks a major victory for Ripple. The executives involved are pleased with the outcome and believe it vindicates their position against what they consider an unjust attack on crypto.
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