Judge Dismisses Charges Against Ripple Executives in SEC Case
In a recent ruling, Judge Torres of the U.S. District Court in New York dismissed charges against Brad Garlinghouse and Christian Larsen, key figures at Ripple. This decision has generated significant discussion within the crypto community as it marks the end of the U.S. Securities and Exchange Commission’s (SEC) claims related to Ripple’s XRP sales practices.
Understanding the Ruling
Fred Rispoli, a prominent lawyer in the crypto industry, shared insights on social media regarding the dismissal. The ruling specifically focused on dismissing the Institutional Sales claim against Garlinghouse and Larsen. The claims regarding Programmatic Sales and Other Distributions had previously been ruled in favor of Ripple and were no longer applicable. However, if the SEC appeals and overturns these transaction types, there is a possibility that some claims could be revived.
Protection from Future Claims
Importantly, the dismissal of the Institutional Sales claim was made “with prejudice,” which provides Garlinghouse and Larsen with protection against future lawsuits based on the same theory. Rispoli suggests that this specific focus on Institutional Sales may indicate the SEC’s intention to permanently conclude this case rather than pursue it further.
A Recap of the Ripple-SEC Battle
The SEC initially accused Ripple of violating securities law through the sale of XRP on crypto exchanges, leading to a legal confrontation. This had significant repercussions for Ripple’s business, with major exchanges removing XRP from their platforms. On October 4th, Judge Analisa Torres delivered a victory for Ripple by ruling that the SEC had failed to demonstrate key legal questions or substantial disagreements. Brad Garlinghouse expressed his satisfaction with the outcome while criticizing the SEC for its approach.
Hot Take: Ripple Executives Cleared, But the Battle May Not Be Over
The recent dismissal of charges against Ripple executives is undoubtedly a positive development for the company and its leaders. It provides them with protection against future lawsuits related to Institutional Sales. However, it’s important to note that the possibility of revived claims exists if the SEC appeals and successfully overturns previous rulings on Programmatic Sales and Other Distributions.
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