The court hearing of oral argument for its motion against the Securities Exchange and Commission (SEC) remedies was accepted by the court, at the request of Ripple ally LBRY. The next date in the Ripple v SEC case is January 30, 2023.
All eyes on SEC v Ripple Labs
John E Deaton, a crypto lawyer who filed an amicus brief in the LBRY lawsuit, and the SEC v Ripple lawsuit stated in a long Twitter thread, that “The January 30th hearing regarding @LBRYcom’s Motion to Limit the SEC’s Remedies is arguably the most important crypto hearing to date. The SEC is seeking disgorgement from a non-party but also read the SEC’s proposed language for the permanent injunction.”
Mr. Deaton, founder of Crypto-Law.us, mentions his reasons in a long Twitter thread as on December 28, 2022: “1) The SEC is inappropriately seeking punitive disgorgement in a NON-FRAUD case. Judge Netburn in the Ripple case stated that the lawyers at the SEC lacked a faithful allegiance to the law and despite the law, framed legal arguments based solely to advance its desired goals.”
The January 30th hearing regarding @LBRYcom’s Motion to Limit the SEC’s Remedies is arguably the most important crypto hearing to date.
The SEC is seeking disgorgement from a non-party but also read the SEC’s proposed language for the permanent injunction.
— John E Deaton (@JohnEDeaton1) December 28, 2022
At the backstage
According to The Wall Street Journal, the SEC says Ripple illicitly raised an estimated $1.4 billion by selling XRP, while breaking investor-protection rules. Ripple Labs CEO Brad Garlinghouse and its co-founder Christian Larsen were sued along with the company. The company stated that XRP are meant for enabling global payments and not an investment as claimed by the SEC.
CEO Garlinghouse had acquired almost $160 million between 2017 to 2020 through the sale of XRP. On the other side, co-founder Larsen, who stepped down as CEO in 2016, had earned almost $450 million via sale of XRP between 2015 and 2020, as claimed by the SEC. Despite the SEC’s supervision in 2017, thousands of virtual coins have been sold out illegally avoiding legal monitoring.
As per sources, SEC said in its filing, that “Even if the SEC were to engage in a belated, post-discovery transaction-by-transaction analysis to identify XRP offers and sales with contracts, its claim would still fail as a matter of law. Not one of those contracts granted post-sale rights to recipients as against Ripple or imposed post-sale obligations on Ripple to act for the benefit of those recipients.”
According to a press release published by SEC in October 2020, it stated that “The Securities and Exchange Commission announced today that a federal district court has entered a final judgment on consent against Kik Interactive Inc. to resolve the SEC’s charges that Kik’s unregistered offering of digital “Kin” tokens in 2017 violated the federal securities laws.”
Source: https://www.thecoinrepublic.com/2023/01/01/hearing-of-ripple-vs-sec-case-most-awaited-in-crypto/