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

XRP coin holders have attempted to be a third party defendant in the US Securities and Exchange Commission lawsuit against Ripple Labs.

John Deaton of the Deaton law firm filed requests for intervention on March 14 on behalf of over 6,000 XRP holders. Deaton – himself an XRP holder – argued that the coin holders’ interests were not adequately represented in the securities lawsuit against Ripple Labs and its executives.

Deaton’s argument builds on Ripple Labs’ rebuttal of securities violations. In particular, if XRP is not a security, as Ripple executives Bradley Garlinghouse and Christian Larsen claim, the efforts of these executives have no impact on XRP’s performance.

For this reason, Deaton, together with over 6,000 affected coin holders, intervened as a third party accused. In the registration it says:

“Given the SEC’s own statements that this court is the exclusive forum to hear claims on this matter and Ripple’s position that XRP holders are not relying on Ripple’s best efforts to protect their interests in this case and the nature of the defense To be able to leave Ripple, the intervention of the XRP holders, is necessary. “

In an announcement posted on Deaton’s Crypto-Law website on March 14, the attorney and cryptocurrency enthusiast alleged that XRP holders would suffer losses of US $ 15 billion in the days immediately following the announcement of the SEC’s lawsuit against Ripple Labs. Dollars would have suffered. In the two weeks after the lawsuit began, the XRP coin price fell 76% from $ 0.76 to $ 0.18.

The falling coin price was partly triggered by the decision of the major cryptocurrency exchanges to delist XRP as part of the lawsuit. Numerous major exchanges, including Binance.US, eToro, Coinbase, Bittrex, and OKCoin, have removed XRP from their respective platforms. Securities services like Grayscale also liquidated XRP holdings, converting them into more Bitcoin (BTC), Bitcoin Cash (BCH), and Litecoin (LTC).

In January, Deaton filed a petition on behalf of XRP holders asking the SEC to distinguish between XRP sales made by Ripple executives and XRP purchases made by individual coin holders in secondary exchanges. The filing also requested that any funds received from a possible Ripple settlement be diverted to a collective trust for use by XRP holders who have suffered losses as a result of the actions of the SEC. The SEC rejected the motion.

On March 11, Ripple executives Garlinghouse and Larsen denied requests by the SEC to investigate the details of their personal finances. Garlinghouse and Larsen called for a protection order to block an investigation into their personal accounts, arguing that their personal and professional finances were not intertwined. The legal team also asked courts to overturn summons issued at six banks used by Garlinghouse and Larsen.

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