- SEC seeks $770 million in Ripple case, sparks settlement discussions.
- Attorney John Deaton shares insights on the ongoing Ripple vs. SEC battle.
- Ripple’s legal journey and potential outcomes in the SEC lawsuit.
Recent developments in the ongoing Ripple vs. SEC case have stirred the crypto community. The SEC is seeking a massive $770 million to settle the XRP case. This substantial demand has raised eyebrows and led to heated discussions in the legal sphere.
John Deaton, the attorney representing thousands of XRP holders, has provided insight into the situation. He expressed his skepticism regarding the progress of settlement talks between Ripple, its key figures (Brad Garlinghouse and Chris Larsen), and the SEC.
According to Deaton, there hasn’t been a significant conversation on settlement terms. He described the SEC’s position as “pissed and embarrassed” and emphasized their demand for a $770 million settlement.
Deaton went on to explain that the penalty phase is akin to a second legal battle, requiring extensive documentation, depositions, and negotiations. Ripple aims to significantly reduce the $770 million settlement by excluding certain factors, such as On-Demand Liquidity (ODL) transactions, reducing expenses, costs, and more.
To provide context, the SEC sought $23 million from LBRY.com, a case that involved eight months of additional litigation before a fine of $130,000 was issued. This protracted legal process indicates that a final judgment in the Ripple vs. SEC case may not be expected until late summer, at the earliest, and a full year before any potential appeal is filed.
The outcome of Coinbase’s motion to dismiss (MTD) may play a significant role in the direction this case takes. If Coinbase’s MTD is successful, it could force the SEC to reconsider its anti-crypto stance and potentially lead to a settlement with Ripple. However, if Coinbase’s MTD is unsuccessful, a settlement may become less likely.
The crypto community will be closely watching the arguments on Coinbase‘s MTD scheduled for January 17, 2024, with a ruling expected 60-120 days later. Until then, Ripple is anticipated to incur substantial legal expenses in its effort to reduce the $770 million settlement demand.
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