Top Lawyer Highlights How Ripple Can Secure 99.9% Victory Against SEC

Attorney John Deaton, XRP holders’ lawyer, opines that Ripple could secure a 99.9% legal victory against SEC if it pays $20M or less as penalties.

Pro-XRP lawyer John Deaton has refuted claims that the summary judgment in the SEC v. Ripple lawsuit ended in a 50/50 outcome for the SEC.

“The people who’ve argued that the SEC got a 50-50 victory in the @Ripple case are wrong,” he asserted.

Ripple’s Victory Could Surge to 99.9%

The prominent legal expert claimed the lawsuit’s outcome was closer to a 90/10 advantage in Ripple’s favor. Interestingly, Attorney Deaton claimed Ripple’s legal victory in the legal duel could surge to 99.9% if the blockchain company pays a penalty of $20 million or less.

The people who’ve argued that the SEC got a 50-50 victory in the @Ripple case are 💯 wrong. It was more like 90-10 in Ripple’s favor. If Ripple ends up paying $20M or less it’s a 99.9% legal victory. https://t.co/Xe6SYBiTCJ

— John E Deaton (@JohnEDeaton1) November 4, 2023

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Ripple CLO Highlights SEC Defeat 

Deaton made this known in response to Ripple Chief Legal Officer (CLO) Stuart Alderoty’s tweet highlighting the SEC defeat against Aron Govil in the United States Court of Appeals for the Second Circuit.

According to Alderoty, the Second Circuit held that the SEC cannot seek substantial disgorgement without first proving that investors suffered financial harm.

Interestingly, many legal experts like Attorney Jeremy Hogan suggested that the Second Circuit ruling can significantly impact the remedies phase of the SEC v. Ripple case. Referencing the Govil decision, Attorney Hogan said XRP holders would need to incur losses for Ripple to be liable.

In a separate tweet, he emphasized that Ripple will only pay damages for institutional investors who acquired XRP above $0.60.

Correct. And now, it’s only institutional buyers who bought XRP for over .60 cents.

— Jeremy Hogan (@attorneyjeremy1) November 3, 2023

Attorney Deaton said he wouldn’t be astonished if it turned out that no institutional investors purchased XRP at a price higher than $0.60.

Not a Split Victory

Recall that Judge Analisa Torres issued the highly-anticipated summary judgment decision in the Ripple case. The judge held that Ripple’s XRP sales to institutional clients violated the law, but the company’s sales to retail investors and other distributions were not.

Judge Torres also established a precedent by determining that XRP in itself is not a security. While SEC enthusiasts believe the July 13 ruling was an even victory for the parties, Ripple refuted these claims, asserting that the lawsuit was about getting clarity for XRP. Per Ripple, the court vindicated its position that XRP is not a security.

Besides the July 13 ruling, the SEC also suffered other major losses. Notably, the court denied the SEC’s request to certify an interlocutory appeal, and the regulator also dismissed its case against Ripple execs Brad Garlinghouse and Chris Larsen.

Ripple Won’t Pay Up to $770M

Following its defeats, the SEC hopes to get a massive chunk from the $770M worth of XRP Ripple sold to institutional clients.

However, Attorneys Deaton and Hogan believe the damages will significantly reduce during the remedies briefing. The lawyers speculate that Ripple will exempt its legitimate business expenses and other XRP sales conducted outside the U.S. SEC jurisdiction.

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• Source: https://thecryptobasic.com/2023/11/07/top-lawyer-highlights-how-ripple-can-secure-99-9-victory-against-sec/?utm_source=rss&utm_medium=rss&utm_campaign=top-lawyer-highlights-how-ripple-can-secure-99-9-victory-against-sec