Insights into Potential Financial Repercussions for Ripple in SEC Case
Prominent attorney Jeremy Hogan recently discussed the ongoing SEC vs. Ripple case, providing insights into the potential financial consequences for Ripple. In response to another pro-XRP attorney’s comment, Hogan humorously compared his legal thoughts to resolving a marital disagreement. He then delved into the legal aspects surrounding Ripple, explaining that disgorgement involves removing profits from rule violators like Ripple.
Reducing Liabilities Through Deducting Business Expenses
Hogan highlighted key arguments that could favor Ripple. Referring to a previous case, he emphasized that disgorgement should be based on net profits rather than gross, which could significantly reduce Ripple’s liabilities by deducting business expenses from total sales.
The Definition of “Victims” and Jurisdictional Reach
Hogan further explored the definition of “victims” within the context of disgorgement, stating that it refers to individuals or entities who lost money on an investment. He also discussed the jurisdictional reach of the SEC, emphasizing that the SEC must prove a nexus between XRP purchasers and the United States. Sales to foreign entities without US connections may be exempt from the SEC’s claims.
Challenges Faced by the SEC and Expected Settlement Figure
Hogan mentioned that the SEC doesn’t have to prove disgorgement damages with specificity but can provide a ballpark estimate. He noted that the SEC might challenge certain expenses included in Ripple’s profit calculations related to legal violations. Concluding his analysis, Hogan estimated a significantly lower penalty for Ripple and speculated that it could be under $100 million based on information he has heard.
Hot Take: Potential Reduction in Penalties for Ripple
Based on Jeremy Hogan’s analysis, the ongoing SEC vs. Ripple case may result in significantly lower penalties for Ripple than the initial $770 million. By deducting business expenses from total sales and challenging certain expenses, Ripple could potentially see its liabilities reduced to under $100 million. However, more litigation and information are still to come, so the final settlement figure remains uncertain.
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