Ripple Scores Over the SEC after DOJ statements?

The January hearing in the Ripple vs SEC case is regarded as “most awaited” for the crypto community especially for XRP supporters who are praying for Ripple to find a way out to win against U.S. government agency.

XRP advocates saw a bright day after recent statements from the U.S. Department of Justice (DOJ), which categorized two tokens, CRV and MNGO as “commodities.” The DOJ’s statement has prompted confidence among community members, and may tend to become useful in terms of supporting reference points for Ripple’s lawyers in the case that has been dragging on since December of 2020.

Avraham Eisenberg, crypto investor who turned DeFi trading firm Mango Markets “insolvent” while hacking $110 million through his “highly profitable trading strategy.” He was arrested in Puerto Rico on December 26, 2022, according to a second filing as approved by Assistant U.S. Attorney Thomas Burnett. 

According to media reports, in a deposition signed by Federal Bureau of Investigation (FBI) Special Agent Brandon Racz, claimed that Eisenberg “knowingly” manipulated commodity prices of the MNGO token and abruptly borrowed more assets than its capacity. He sold a large number of MNGO perpetuals contracts to himself, resulting in 1,300% pump in the price within an hour.

As a statement added by the FBI official noted: “Eisenberg engaged in a scheme involving the intentional and artificial manipulation of the price of perpetual futures contracts on a cryptocurrency exchange called Mango Markets, and other manipulative and deceptive devices and contrivances.”

According to news reports, Attorney John E. Deaton, who is a lawyer representing 75,000 XRP investors with an amicus brief, recently asked for the crypto community’s opinions regarding SEC vs. Ripple case. Almost 59% out of 18,000 votes inclined towards a settlement of Ripple with the SEC. 

Recently, Deaton posted on Twitter: “NOT TRUE. Prosecutors are simply calling the tokens commodities for their own prosecutorial reasons. Whether the underlying asset is a commodity or a security isn’t important – the fraud is. Calling it a security creates an unnecessary burden of proof.”

The SEC charged Ripple illegally raised $1.4 billion by selling XRP tokens, violating investor-protection rules. Also, the Ripple Labs CEO Brad Garlinghouse and co-founder Christian Larsen were named in the lawsuit.

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