XRP Holders Face Hefty Settlement Demand in SEC Lawsuit, Legal Rep Reveals
Attorney John Deaton, representing XRP holders in the lawsuit against the U.S. Securities and Exchange Commission (SEC), revealed that the regulatory body is seeking a substantial settlement of $770 million from Ripple Labs.
Deaton, in a detailed social media post, stated that the SEC demands this sum in response to accusations that Ripple Labs sold unregistered securities. He explained that the penalty phase requires extensive legal proceedings involving depositions, document requests, and financial scrutiny. Ripple aims to reduce this amount by excluding certain transactions and minimizing costs. Deaton indicated that Ripple’s settlement depends on the outcome of Coinbase’s motion to dismiss, and he anticipates a final judgment by late summer.
Despite challenges, Deaton expressed confidence that Ripple will successfully negotiate a lower settlement amount. Notably, recent legal developments, including a judge’s ruling in favor of XRP retail sales and the SEC dropping charges against Ripple executives, have influenced the ongoing case.
Clever Robot News Desk 27th October 2023
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