Attorney John Deaton speculates that the SEC aims to claim $770 million from Ripple in the ongoing legal battle, but Ripple is expected to make efforts to reduce this amount.
Key Takeaways
- Pro-XRP lawyer John Deaton speculates on SEC’s $770 million demand from Ripple.
- Court ruled in July that Ripple’s institutional sales violated federal securities laws.
- Attorney Deaton believes Ripple will work to drastically reduce the fine through various strategies.
- Outcome of SEC’s lawsuit against Coinbase may influence the Ripple case.
In a recent twist in the ongoing legal battle between Ripple and the SEC, pro-XRP lawyer John Deaton has shared his insights on the SEC’s demand for $770 million from Ripple. Deaton, who represents thousands of XRP holders in the SEC v. Ripple lawsuit, took to Twitter to shed light on the upcoming remedies stage of the case.
Ripple Sold $770 Million
Deaton’s tweet highlighted the SEC’s stance, suggesting that the Securities and Exchange Commission is determined to obtain a hefty sum of $770 million from Ripple. This demand stems from the value of XRP Ripple sold to institutional investors, which the court previously ruled as a violation of federal securities laws.
JUST IN: ‘Embarrassed’ SEC Wants ‘$770M Worth of Flesh’ From Ripple: Details
— Crypto Chiefs News (@CryptoChiefNews) October 28, 2023
As the remedies stage approaches, both parties have until November 9, 2023, to propose a briefing schedule. If they fail to agree on a suitable schedule, they will jointly request the court to set one.
Deaton speculates that Ripple will vigorously contest the SEC’s demand. The blockchain company is likely to seek reductions in the fine by excluding various expenses, such as On-Demand Liquidity (ODL) sales of XRP and legitimate business expenses. This effort could involve significant legal expenses for Ripple, as Deaton predicts.
Ripple Will Drastically Reduce the Penalty
Drawing parallels with the LBRY case, where the SEC initially sought $23 million in fines but ultimately settled for $130,000, Deaton emphasizes that Ripple has a chance to significantly reduce the $770 million figure.
Moreover, Deaton suggests that the outcome of the SEC’s lawsuit against Coinbase could play a pivotal role in determining the course of the Ripple case. If Coinbase succeeds in having the SEC charges dismissed, it might force the regulator to reconsider its stance on cryptocurrencies, potentially leading to settlement negotiations with Ripple. However, Deaton also notes that if Coinbase loses its case, it may diminish the likelihood of a settlement in the Ripple case.
To Conclude
The SEC’s substantial demand for $770 million from Ripple adds a new layer of complexity to this ongoing legal saga. As the remedies stage approaches, Ripple’s strategies to reduce this penalty will undoubtedly be closely watched by XRP investors and the broader crypto community. The outcome of the SEC’s legal battle with Coinbase could hold the key to how the Ripple case unfolds, making it a crucial development to monitor in the coming months.
