XRP Holders Could Lose Money for Years if SEC Prevails, Warns John Deaton

4:10 am
July 7, 2023
Featured image for “XRP Holders Could Lose Money for Years if SEC Prevails, Warns John Deaton”

John Deaton, a lawyer supporting XRP, has expressed his concerns regarding the ongoing legal battle between Ripple and the U.S. Securities and Exchange Commission (SEC). Deaton believes that if Ripple loses the case, it may take years for holders to receive any financial compensation, and only if Ripple loses on appeal.

However, Deaton also believes that if the Supreme Court takes on the appeal, which he expects if Congress hasn’t taken action by then, Ripple will ultimately win the case.

Legal Troubles for Ripple Could Drag On

Deaton explains that if the SEC wins the case, Ripple will appeal the decision, resulting in a continuation of the current state for the next 2-5 years. Deaton stressed:

“Assuming the SEC wins and the civil case lawyers get a win because the judge in California follows Judge Torres’ ruling, Ripple will appeal that case as well, and there will be no money for years, if ever.”

In the event that Ripple exhausts all of its appeals and the SEC prevails, the SEC would collect the money, and a payback fund similar to Veritaseum would be offered to XRP holders to sell their tokens.

Both the Ripple and Veritaseum cases involve allegations of unregistered securities offerings within the cryptocurrency industry. In the Veritaseum case, the SEC accused Veritaseum and its founder of conducting an unregistered initial coin offering (ICO) that raised $14.8 million. Similarly, in the Ripple case, the SEC alleged that Ripple conducted an unregistered securities offering by selling XRP to investors.

Following the conclusion of the Veritaseum case, the SEC established a Fair Fund to reimburse investors affected by the unregistered securities offering. This could serve as a precedent for how the SEC might handle the Ripple case if it successfully proves that XRP is a security.

XRP Holders Can Stake Their Claim

Deaton further argues that being on the “75K list,” which includes over 75,000 XRP holders named as potential “intervenors,” is beneficial because it enables the identification of a large class of XRP holders. By joining the list, these individuals can potentially seek compensation or relief if the SEC’s case against Ripple results in a judgment or settlement that affects the value of XRP.

Deaton advises XRP holders to ignore those who claim that joining the 75K list and arguing that XRP is not a security is a bad idea. He believes that if there is ever a financial recovery for XRP holders, joining the list would likely result in contact for potential compensation.

In summary, Deaton is skeptical that the civil case will lead to any significant outcome. If the SEC prevails, it would collect the most money and provide the best option, ironically. Additionally, if Ripple loses and Congress takes steps to address this regulatory issue during the appeals process, the situation could change.

XRP is following the market downtrend on the 1-day chart. Source: XRPUSDT on TradingView.com

Featured image from Unsplash, chart from TradingView.com


Share:

More in this category ...

7:31 am April 20, 2024

Relay Chain Replacement And 10M DOT Prize Incentive

Featured image for “Relay Chain Replacement And 10M DOT Prize Incentive”
5:03 am April 20, 2024

Hedgey Protocol loses $44.7M in twin cyber assaults

Featured image for “Hedgey Protocol loses $44.7M in twin cyber assaults”
3:03 am April 20, 2024

The adventure to a mature asset control machine

Featured image for “The adventure to a mature asset control machine”
7:28 pm April 19, 2024

320 Million USDT Inflow Could Ignite Price Surge

Featured image for “320 Million USDT Inflow Could Ignite Price Surge”
3:24 pm April 19, 2024

Live from TOKEN2049: Telos broadcasts Ethereum Layer 2 partnership with Ponos Technology

Featured image for “Live from TOKEN2049: Telos broadcasts Ethereum Layer 2 partnership with Ponos Technology”
2:39 pm April 19, 2024

JPMorgan CEO calls Bitcoin a ‘Ponzi Scheme’ regardless of JPMorgan’s involvement in Bitcoin ETFs

Featured image for “JPMorgan CEO calls Bitcoin a ‘Ponzi Scheme’ regardless of JPMorgan’s involvement in Bitcoin ETFs”
7:30 am April 19, 2024

BNB Price May Have Another Chance For A Bullish Streak: Here’s How

Featured image for “BNB Price May Have Another Chance For A Bullish Streak: Here’s How”
3:44 am April 19, 2024

Getting in a position for synthetic common intelligence with examples

Featured image for “Getting in a position for synthetic common intelligence with examples”
12:15 am April 19, 2024

Injective and Jambo companion to deliver mobile-based DeFi to tens of millions in rising markets

Featured image for “Injective and Jambo companion to deliver mobile-based DeFi to tens of millions in rising markets”
7:29 pm April 18, 2024

Successful Beta Service release of SOMESING, ‘My Hand-Carry Studio Karaoke App’

Featured image for “Successful Beta Service release of SOMESING, ‘My Hand-Carry Studio Karaoke App’”
4:05 pm April 18, 2024

Release date showed for brand spanking new augmented fact move-to-earn recreation, SpaceCatch

Featured image for “Release date showed for brand spanking new augmented fact move-to-earn recreation, SpaceCatch”
9:51 am April 18, 2024

NEAR Protocol positive aspects as KangaMoon approaches presale shut

Featured image for “NEAR Protocol positive aspects as KangaMoon approaches presale shut”
7:31 am April 18, 2024

LINK Price Eyes Recovery If It’s Able to Hold One Crucial Level

Featured image for “LINK Price Eyes Recovery If It’s Able to Hold One Crucial Level”
4:25 am April 18, 2024

Understanding glue data and Dedicated DNS

Featured image for “Understanding glue data and Dedicated DNS”
2:39 am April 18, 2024

Worldcoin to release a brand new Ethereum L2 community dubbed “World Chain”

Featured image for “Worldcoin to release a brand new Ethereum L2 community dubbed “World Chain””
7:34 pm April 17, 2024

Crypto Exchanges Bitcoin Supply Can Only Last For 9 Months, ByBit Report

Featured image for “Crypto Exchanges Bitcoin Supply Can Only Last For 9 Months, ByBit Report”
7:27 pm April 17, 2024

SUI spikes 11% as BTC, ETH slide: Here’s why Sui value is surging?

Featured image for “SUI spikes 11% as BTC, ETH slide: Here’s why Sui value is surging?”
4:46 pm April 17, 2024

Using dig +hint to know DNS solution from begin to end

Featured image for “Using dig +hint to know DNS solution from begin to end”
12:15 pm April 17, 2024

Puffer Finance raises $18 million in new investment spherical

Featured image for “Puffer Finance raises $18 million in new investment spherical”
7:37 am April 17, 2024

XRP Price Recovery Could Soon Fade, These Are Key Levels To Watch

Featured image for “XRP Price Recovery Could Soon Fade, These Are Key Levels To Watch”
5:06 am April 17, 2024

IBM and TechD companion to safely percentage knowledge and gear insights with gen AI

Featured image for “IBM and TechD companion to safely percentage knowledge and gear insights with gen AI”
5:03 am April 17, 2024

WOO unveils innovation hub thinking about Bitcoin’s ecosystem

Featured image for “WOO unveils innovation hub thinking about Bitcoin’s ecosystem”
9:51 pm April 16, 2024

OKX launches public mainnet for its ZK-powered L2 community “X Layer”

Featured image for “OKX launches public mainnet for its ZK-powered L2 community “X Layer””
7:40 pm April 16, 2024

Arkham Releases Top 5 Crypto Rich List

Featured image for “Arkham Releases Top 5 Crypto Rich List”
5:27 pm April 16, 2024

Ankr and Brevis coChain associate to reinforce web3 networks with ZK

Featured image for “Ankr and Brevis coChain associate to reinforce web3 networks with ZK”
5:48 am April 16, 2024

4 techniques generative Machine Intelligence addresses production demanding situations

Featured image for “4 techniques generative Machine Intelligence addresses production demanding situations”
12:14 am April 16, 2024

Germany’s biggest federal state financial institution companions with Bitpanda

Featured image for “Germany’s biggest federal state financial institution companions with Bitpanda”
7:46 pm April 15, 2024

Dogecoin Whales Send 800 Million DOGE To Exchanges, Dump Incoming?

Featured image for “Dogecoin Whales Send 800 Million DOGE To Exchanges, Dump Incoming?”
6:09 pm April 15, 2024

Data virtualization unifies information for seamless Machine Intelligence and analytics

Featured image for “Data virtualization unifies information for seamless Machine Intelligence and analytics”
5:02 pm April 15, 2024

NEO rebounds previous $22.8 as this meme coin presale surges previous $4.8 million

Featured image for “NEO rebounds previous $22.8 as this meme coin presale surges previous $4.8 million”