Ripple Labs and XRP didn’t finish very well in 2020, but maybe there’s hope for them this 2021. After the sudden lawsuit by U.S. Securities and Exchange Commission (SEC) against Ripple Labs and its executives for allegedly having carried out a $1.3B illegal securities offering, not all XRP investors stood idly by.
Now, they filed a new lawsuit against SEC. This one alleges that the late legal action by SEC against Ripple isn’t valid at all, and it was made under the direction of Jay Clayton “with improper motive and the specific intent to cause irreparable harm” to XRP investors instead of protecting them, like the SEC’s mission should be.
As the document states:
“As chairman of the SEC, it was Jay Clayton’s (Clayton) fiduciary duty to enforce the SEC mission statement. Instead of protecting investors and sharing information to help investors make informed decisions the Respondent knowingly and intentionally caused multi-billion-dollar losses to innocent investors who have purchased, exchanged, received, and/or acquired the Digital Asset XRP, including the named Petitioners, and all others similarly situated.”
They also argue that the action is coming seven years late, and the SEC didn’t even say a thing when they were actually regulating crypto-securities in the 2017 ICO craze. For them, this is “the most significant SEC enforcement action in modern history” and “XRP has been publicly traded in the United States and globally for SEVEN PLUS years with the SEC’s full awareness and implicit permission.”
That’s exactly why these XRP investors consider that SEC is only harming them, instead of being helpful.
Personal motives against XRP
The lawsuit mentions as well that Jay Clayton may have personal motives to go against Ripple and XRP. As indicated in the text, the financial institution Goldman Sachs is developing an international payment system that could compete directly with Ripple and its products.
Previous to the SEC, Clayton was a close adviser to Goldman Sachs, and his wife has worked with them for two decades. So, they’d try to benefit this firm for their own benefit, by hurting Ripple Labs and thousands of innocent U.S. investors. This is just a theory, though.
Another theory for the SEC lawsuit against Ripple is that they’re looking for a settlement/plea. Quoting the document, “simply put, the SEC filed the most aggressive complaint they possibly could in order to inflict the greatest harm they could in order to bully or coerce a party to settle”.
And they could reach their purpose if this is. XRP price has lost +54% since the first lawsuit announcement, and at least ten crypto-exchanges and companies have delisted it so far. With this new lawsuit by U.S. XRP investors, the legal battle promises to extend even further.
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