Pro-XRP Lawyer Signals Continuing Fight with SEC Over $15 Billion Losses to Retail Investors

Attorney John Deaton has strongly criticized the U.S. Securities and Exchange Commission (SEC) for its handling of cryptocurrency regulation, particularly in relation to the Ripple case. For the unversed, Stuart Alderoty, Ripple’s Chief Legal Officer, recently announced the end of this four-year conflict, with the SEC even apologizing for mischaracterizing XRP.

However, after all the celebrations, Deaton opened up about the financial losses incurred by retail investors, stating that the SEC’s overreach cost small investors a staggering $15 billion. Deaton, who represents 75,000 XRP token holders, made it clear that his clients do not accept the SEC’s apology for the confusion caused by their actions.

In his statement, Deaton said,  “The SEC’s misconduct and gross overreach has caused small investors over $15 billion. On behalf of those 75,000 small investors I represent, we do not accept the SEC’s apology.” He explained the consequences of the SEC’s actions, stating that the lawsuit immediately wiped out $15 billion from XRP’s market value, leading to many investors being liquidated. 

In an interview with the Good Morning Crypto Show, Deaton further elaborated on Ripple’s defense costs, noting that the company had to spend over $100 million in legal fees. He also personally dedicated extensive time and effort challenging the SEC’s unprecedented claim that XRP itself was a security. Despite offering to drop his lawsuit if the SEC removed that language, the agency refused and even targeted him personally.

Opening up about the final outcome of the case, Deaton pointed out that Judge Analisa Torres, a Democrat appointed by President Barack Obama, ruled in favor of XRP holders, stating that XRP itself was not a security. Deaton said that this fact was known from the beginning, yet the SEC dragged investors and Ripple through years of costly litigation.

Deaton argued that those affected by the SEC’s misconduct deserve compensation. He is now awaiting the results of the Inspector General (IG) investigation, which could potentially pave the way for further legal action on behalf of XRP token holders. According to Deaton, this report could be the start of holding those responsible within the SEC accountable for the financial harm caused to investors.