“Seeking legal advice is the opposite of reckless behavior,” Larsen`s lawyer said. Ripple has seen a new addition to its legal team. According to updates shared by James K. Filan, Ripple enthusiast and former federal prosecutor, “Attorney Bethan Rhian Jones has filed a motion to appear and join Ripple Labs` defense team. Attorney Jones is with Kellogg Hansen. The lawyers` new addition suggests that court proceedings could take some time. The legal battle between the U.S. Securities and Exchange Commission (SEC) and payment protocol company Ripple Labs could soon come to an end — that is, if a federal judge rules that the crypto company did not violate federal securities laws. Ripple is proud to have a strong executive bank on our management team and board of directors. Blockchain payment company Ripple has hired two Kellogg Hansen lawyers, Kylie Chiseul Kim and Clayton J. Masterman, to bolster its legal battle against the United States. Securities and Exchange Commission [SEC].
Ripple co-founder and chairman Christian Larsen is also a defendant in the SEC case. His attorney, Martin Flumenbaum of Paul, Weiss, Rifkind, Wharton & Garrison, said the unsealing of the Perkins Coie memos showed the “distorted” characterization of the advice Ripple received. Larsen is accused of recklessly ignoring Ripple`s allegedly illegal sale of XRP. The fact of Perkins Coie`s memos, Flumenbaum told me, refutes this accusation. The SEC lawsuit filed in late 2020 alleged that Ripple Labs Inc. founders Brad Garlinghouse and Chris Larsen illegally sold XRP as an unregistered security to raise $1.3 billion. The stampede continued in both directions. Ripple has added two Kellogg Hansen lawyers to its team to bolster its legal team.
Kylie Chiseul Kim and Clayton J. Masterman, the two newly added lawyers, will represent one of the major players in cryptocurrency in its long battle against the U.S. Securities and Exchange Commission. Justice Analisa Torres granted their respective applications for admission to practice in the above-mentioned case. What you think of two recently unsealed legal memos in the U.S. Securities and Exchange Commission lawsuit against Ripple Labs Inc. likely depends on which direction you`ve already leaned in this closely watched test of crypto regulation. Perkins Coie warned Ripple executives in February 2012 that if they followed their initial plan to sell tokens to investors to raise money to launch a crypto network, U.S. regulators would consider coin securities.
Meanwhile, Ripple`s former CTO Jed McCaleb only ended up with 81.53 million XRP for sale. Ripple could minimize risk, Perkins Coie said, by scrupulously avoiding promoting its coins as an investment and obtaining a letter from the SEC confirming that the government would not treat coins as securities. “What the SEC is proposing is that a common interest be a substitute for a joint venture and that`s not the case,” Alderoty said. “We have not promised any XRP holder that we will take action on their behalf or that we are obligated to take action to do these things.” The SEC also argued that Ripple and Larsen ignored the premise of the October 2012 memo, which assumed the company would not sell XRP to consumers. Perkins Coie warned in his first memo that the SEC would likely consider token securities if Ripple sold them to investors. The second memo reflected Ripple`s revised plan not to sell XRP directly to consumers. But the SEC said in its motion to remove Ripple`s fair termination defense that starting in 2013, Ripple “quickly transitioned from the free distribution of XRP to a lucrative profit by offering and selling XRP for consideration.” Alderoty, who has been with Ripple for nearly four years, reiterated his position that Ripple does not meet the requirements of the Howey test in a case before the U.S. Supreme Court. The test helps determine whether something can be considered a security and therefore an “investment contract” or not. Tomiwabold is an experienced cryptocurrency analyst and technical analyst. It pays a lot of attention to cryptocurrency research, performs comprehensive price analysis, and trades predictions on estimated market trends.
Tomiwabold graduated from the University of Lagos. In February 2021, reports showed that McCaleb was selling large amounts of XRP. It was believed that its inventory would eventually dry up by May 2021 if sales continued at this rate. According to the SEC, Ripple`s core business from 2013 to 2020 was the sale of XRP, although Perkins Coie`s memos warned of the consequences of such sales. The SEC is “trying to reshape the law,” Alderoty said. “They participate in process behavior to achieve a desired outcome, instead of remaining true to the law.” Has Ripple been singled out among the different projects in the crypto ecosystem? He said the company may have been used by the SEC to lead by example. However, the consequences led to “almost every U.S. exchange withdrawing or suspending XRP trading,” Alderoty said, which wiped out the company`s “$15 billion in market capitalization” and prompted it to move its operations overseas. Aldertoy added that the SEC does not identify a contract for an investment between Ripple and an XRP holder. and that there was no after-sales guarantee of Ripple for investors. Things took a new turn when the SEC managed to keep Hinman`s documents out of Ripple`s reach, citing his specific conflicts of interest with these cryptocurrencies. âIn this case, there is no allegation of fraud.
There are no allegations of misrepresentation.