- Ripple’s legal battle could lead to substantial gains for XRP holders.
- SEC fund may offer higher compensation to XRP holders than civil case.
- Ripple’s legal battle could extend for years, with possible appeal to Supreme Court.
In a recent development, John Deaton, the Managing Partner of Deaton Law Firm, has shed light on the potential outcomes of the ongoing civil lawsuit against Ripple Labs. The lawsuit, which has been certified as a class action by a US district judge, allows US-based XRP investors to sue Ripple for allegedly selling unregistered securities.
Deaton’s commentary comes in response to an XRP enthusiast’s query about the potential implications of Ripple losing the lawsuit. Deaton clarified that if Ripple loses to the Securities and Exchange Commission (SEC), XRP holders would not receive any compensation for several years. This would only occur if Ripple also loses on appeal against the SEC.
Deaton further explained that if Ripple loses, the company would likely appeal the SEC ruling, potentially prolonging the legal battle for another two to five years. He speculated that Ripple might even take the case to the Supreme Court if Congress does not intervene. Deaton expressed confidence that Ripple would secure a complete victory against the SEC at the Supreme Court level.
In a scenario where Ripple loses all appeals, including the SEC and civil cases, Deaton stated that the SEC would be responsible for collecting the money, not the civil plaintiff. The SEC would collect the $1.3 billion that it alleges Ripple raised through XRP sales. The SEC would then establish a fund to compensate XRP holders, which Deaton believes would undermine the civil plaintiff.
Deaton further suggested that XRP holders would benefit more from the SEC fund than from compensation via the civil case. He reasoned that the lawyers in the civil case would take 25-35% of the recovery fund for attorney fees, and also deduct the cost of the case from the fund before distributing the remainder to XRP holders.
This development has sparked a flurry of reactions within the XRP community, with many concerned about the potential impact of the SEC vs. Ripple case on the civil lawsuit against the company. As the legal proceedings continue to unfold, the future of Ripple and its XRP holders hangs in the balance.
Looking ahead, the future of Ripple and its XRP holders hangs in the balance. However, the potential for Ripple to win its case against the SEC, coupled with the possibility of XRP holders receiving substantial compensation from the SEC fund, paints a positive picture for the future of XRP.
This could potentially lead to a surge in XRP’s price, making it a lucrative asset for investors. As the legal proceedings continue to unfold, the future of Ripple and its XRP holders remains a compelling narrative in the world of cryptocurrency.
Disclaimer : The above article is for informational purposes only and does not constitute financial or investment advice.
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