Over 6,000 XRP holders volunteer as third party defendants in SEC lawsuit

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Over 6,000 XRP holders volunteer as third party defendants in SEC lawsuit

Holders of the XRP coin have requested to be joined as third-party defendants in the U.S. Securities and Exchange Commission’s lawsuit against Ripple Labs.

A motion to intervene was filed on the 14th. March filed by John Deaton of Deaton Law Firm on behalf of over 6,000 XRP holders. Deaton, himself an XRP holder, argued that the interests of token holders were not adequately represented in the securities lawsuit against Ripple Labs and its executives.

Deaton’s argument is based on Ripple Labs’ denial of any securities-related misconduct. More specifically, if XRP is not a guarantee, as Ripple executives Bradley Garlinghouse and Christian Larsen claim, then the efforts of these executives are irrelevant to the performance of XRP.

For this reason, Deaton, along with more than 6,000 interested coin owners, requested to join as third party defendants. The papers say:

Given the SEC’s own statements that this Court is the exclusive forum for adjudicating the claims in this case, and Ripple’s position that XRP holders cannot rely on Ripple’s efforts to protect their interests in this case, and given the nature of Ripple’s defense, XRP holder intervention is required.

In an announcement made on 14. Posted on Deaton’s Crypto Law site in March, the lawyer and crypto-currency enthusiast claimed that XRP holders suffered $15 billion in losses in the days immediately following the announcement of the SEC’s lawsuit against Ripple Labs. In the two weeks following the start of the legal battle, the price of the XRP coin fell 76% from $0.76 to $0.18.

The price drop of the coin was partly caused by the decision of major cryptocurrency exchanges to withdraw XRP from trading due to disputes. Many major exchanges like Binance.US, eToro, Coinbase, Bittrex and OKCoin have removed XRP from their respective platforms. Investment services like Grayscale have also eliminated XRP holdings, opting to convert them into more bitcoin (BTC), bitcoin cash (BCH) and Litecoin (LTC).

In January, Deaton filed a petition on behalf of XRP holders, asking the Securities and Exchange Commission to distinguish between XRP sales by Ripple executives and XRP purchases by individual coin holders in secondary markets. The statement also called for any proceeds from the final settlement to be deposited into a collective trust fund for the use of XRP holders who have suffered losses as a result of the SEC’s actions. The application was rejected by the Securities and Exchange Commission.

On the eleventh. In March, Ripple executives Garlinghouse and Larsen refused requests from the Securities and Exchange Commission (SEC) to examine the finer details of their personal finances. Garlinghouse and Larsen sought a protective order blocking examination of their personal accounts, arguing that their personal and business finances were unrelated. The legal team also asked the judge to quash the subpoenas to the six banks used by Garlinghouse and Larsen.

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Emilia James
By Emilia James

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