Get the scoop on finance - sign up for mobile alerts
Ripple and XRP
| On
July 21, 2022

SEC Asks Judge To Remove 67,000 XRP Holders From Court Case and Bar Ripple-Supporting Lawyer From Participation

By Daily Hodl Staff

The U.S. Securities and Exchange Commission (SEC) is opposed to allowing attorney and XRP supporter John Deaton from participating in the Ripple lawsuit any longer.

In April 2021, Deaton and five other XRP holders, referred to as “movants” in the case documents, filed a motion to intervene in the case “on behalf of all similarly situated XRP Holders.”

ADVERTISEMENT

U.S. District Judge Analisa Torres said last October that while the XRP holders cannot intervene in the case, she will allow them to act as “amici curiae” in the SEC’s action against Ripple Labs Inc.

“Amici Curiae” means “friend of the court,” according to Cornell Law School. Amici curiae can submit documents known as amicus briefs on issues relevant to the case as long as the court approves the briefs in advance.

The SEC filed its lawsuit against Ripple Labs in late December 2020, declaring XRP a security and accusing the San Francisco payments company of selling the crypto asset without proper authorization.

In May, Deaton filed a letter requesting to represent 67,000 XRP holders. The move was a direct response to the SEC wanting to bring in an expert to testify on what XRP holders thought when they purchased the sixth-largest crypto asset.

ADVERTISEMENT

Recently surfaced court documents indicate the SEC filed a letter to Judge Torres in early June requesting that Deaton and the XRP investors be prevented from filing an amicus brief regarding the opinions of one of the Commission’s experts.

The SEC also requested that Torres prohibit Deaton from any further participation in the lawsuit. The SEC claims the movants’ “amici” status is only permitted on briefings related to legal issues, not factual ones.

Crypto attorney James K. Filan notes that the amici have until Monday, July 25th to respond.

Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
Check Price Action
Follow us on X, Facebook and Telegram
Surf The Daily Hodl Mix
&nbsp
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

Featured Image: Shutterstock/Design Projects/Tun_Thanakorn

ADVERTISEMENT