Ripple expected to shave off SEC’s $770m claim

Legal specialist Jeremy Hogan has detailed possible tactics Ripple could use to reduce a speculated SEC penalty of $770 million significantly.

On Nov. 5, Hogan took to social media platform X to outline pivotal arguments that Ripple might leverage to mitigate the damages pursued by the SEC.

Hogan highlights that the SEC’s pursuit of “disgorgement,” aimed at recouping profits from alleged misconduct, should be calculated using Ripple’s net profits rather than the total revenue. This key difference could permit the deduction of business expenses from Ripple, potentially reducing the demanded amount substantially.

Another point raised by Hogan is the jurisdictional reach of the SEC, which is limited to U.S. soil. He suggests that only those sales of XRP that have a U.S. nexus could be considered by the SEC, potentially narrowing the scope of the case and the associated penalties.

You might also like: Crypto lawyer predicts Ripple legal triumph as token gains 6%

SEC vs. Ripple

The legal tussle began in December 2020 when the SEC filed a lawsuit against Ripple Labs, alleging that the company had conducted an unregistered securities offering through its sale of XRP.

The case has seen various developments, including a notable decision by Judge Analisa Torres, which found that XRP is not a security when traded on secondary markets. This ruling, along with reductions in the charges against Ripple executives, has marked a turning point in the case.

Ripple’s legal team, led by chief lawyer Stuart Alderoty, has also drawn attention to the recent Second Circuit ruling in SEC v. Govil. In this case, the court ruled that the SEC must demonstrate that investors experienced actual financial harm before demanding significant disgorgement. This precedent supports Ripple’s position that the extent of its liability may hinge on whether XRP investors have suffered losses.

The latest development in the case saw Judge Torres approving an order for the SEC and Ripple to propose a briefing schedule concerning the institutional sales of XRP. This aspect of the lawsuit pertains to the allegations that Ripple breached securities laws. The parties have been instructed to submit their joint briefing schedule by Nov. 9.

You might also like: Ripple’s top lawyer scrutinizes SEC’s courtroom defeats during Gensler tenure
Follow Us on Google News

Comments

Post a Comment

Popular posts from this blog

Bitcoin Price Prediction: Here’s Why BTC Is Failing to Move Above $30k

Image
The largest cryptocurrency has according to on-chain insights from CryptoQuant “been lodged within a narrow corridor for the past three months.” The on-chain analytics platform claims that the answer lies in the protocol’s fundamental factors such as supply and miner activity. advertisement While we will explore Bitcoin’s fundamental position in a bit, BTC is still feeling the pinch of an aggressive bear camp – down 1% to $30,005. Trading volume is up to $14 billion with its market capitalization holding at $582 billion. The largest altcoin appears to be following in BTC’s footsteps, down 1.6% to $1,898. As discussed in the previous Analysis , Ethereum price must reclaim $1,900 support to keep the resumption of the uptrend above $2,000 intact. What’s Next if Bitcoin Price Loses $30,000 Support? The Bitcoin price consolidation in a narrow rectangular pattern, as shown on the daily chart reveals that the tug of war between bulls and bear is close to its tensile l
Read more

Sam Bankman-Fried Finally Agrees to Testify Before House Committee Next Week – This is What Happened

Image
Sam Bankman-Fried. Source: a video screenshot, FTX Official / YouTube Sam Bankman-Fried, founder and former CEO of FTX, has eventually agreed to participate in the upcoming U.S. House committee’s hearing and testify on the collapse of his crypto empire.  In a Friday tweet, Bankman-Fried said he still does not have access to much data regarding his crypto empire and what led to the collapse, but would participate in the hearing on December 13 as the committee believes it would be useful. "I still do not have access to much of my data -- professional or personal. So there is a limit to what I will be able to say, and I won't be as helpful as I'd like. But as the committee still thinks it would be useful, I am willing to testify on the 13th," he said. As reported, the US House Financial Services Committee announced last month that it plans to hold a hearing to investigate the collapse of the crypto exchange FTX. The committee said they expected to hea
Read more

Japan Edges Toward Corporate Crypto Tax Reform

Image
Source: Oka/Adobe Japan is inching closer to reforming its strict crypto tax laws for corporations – in a bid to stop an “exodus” of crypto talent and capital from flowing overseas. Pressure to reform has mounted in recent years, with industry figures and opposition leaders alike all calling for change. More recently, the top financial regulator, the Financial Services Agency (FSA), has signalled that it also wants to modify the restrictive laws. But a final step in this process is approval from the National Tax Agency (NTA). But while the NTA is yet to publicly signal it will make the change, analysts believe that it is working on a tax reform bill that it hopes to unveil in parliament in the coming months. Late last week, the NTA released a set of FAQs that address the matter of crypto taxation. And while these did not directly make mention of any coming reform, Junya Izumi, an Associate Professor of Tax Law at the Chiba University of Commerce, pointed out on Twit
Read more