The lawsuit filed against the San Francisco-based crypto solutions company and cross-border payment firm, Ripple and its executives Brad Garlinghouse and Chris Larsen by the United States Securities and Exchange Commission (SEC) in December 2020, threw thousands of XRP investors into losses they are yet to recover from.
Recall that XRP price has been trending downward ever since the longstanding lawsuit with several crypto exchanges such as Coinbase relinquishing support for the sixth-largest cryptocurrency by market capitalization.
Read Also: XRP Lawsuit: Google Bard Analyses the Chances of Ripple’s Victory
A recent Twitter discussion with Marc Fargel, an ex-SEC director revealed that affected XRP investors may be considering a civil lawsuit against the SEC, on the claims that the Securities agency caused retail holders “financial damages.” This probable civil suit is dependent on the final Court ruling in the ongoing Ripple-SEC case.
Suitpotato, an XRP community member asked, “Marc, serious question. What are your thoughts on US buyers putting together a civil suit against the SEC for causing financial damages to us retail holders if the judge rules in favor of Ripple?”
In response, Fagel stated clearly that such a lawsuit would not only be a losing case but would be detrimental to the attorney taking it up, citing the current laws in the United States.
According to the former SEC officer, an attorney who decides to file such a lawsuit stands the risk of being sanctioned by the Court. He answered, “I think that under current law it’s a losing case, and arguably one where an attorney filing it would risk sanctions (at least based on the known facts).
Thanks for the response.
Well, I do know 75k of us that will gladly lock arms and support that attorney for better or worse.
— SuitPotato (@XRPologist) June 23, 2023
While this answer may sound biased to the XRP community, Fagel revealed that he has personally litigated against the SEC. “But that’s just one guy’s opinion, and people think I’m biased (even though I’ve personally litigated against the SEC),” he wrote.
Read Also: XRP Lawsuit: Assessing the Unlikelihood of a Settlement – Perspectives from a Legal Veteran
Although he added that some less risk-averse lawyers may want such a case, Fagel maintained that such civil lawsuits against the SEC from XRP investors are bound to fail because of the current laws. “And I’m sure there are less risk-averse lawyers out there who’d be up for it. It would be fun to watch, but… nope, not gonna work out well,” he added.
Meanwhile, the longstanding SEC lawsuit against Ripple may be ending anytime soon as both parties have filed nearly all the necessary motions including their summary judgment motions. As reported, the infamous Hinman Speech Documents were finally released for public view, triggering a short-lived rally in the price of XRP.
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