XRP holders claim their interests aren't being represented in an ongoing SEC lawsuit against Ripple Labs. Now they want to participate as third-party defendants.
March 15, 2021 | AtoZ Markets – Deaton Law Firm founder John Deaton has filed a petition on behalf of 6,000 XRP token holders to participate in the Ripple lawsuit.
According to Deaton, the interests of investors are not fully represented.
“Ripple is making this point very clearly, stating that XRP holders cannot objectively rely on the company's efforts,” the document says.
The Deaton Law Firm also added that "an essential element of Ripple's protection" is the virtual absence of any legal or fiduciary obligations to the token holders. Deaton called the listed facts sufficient grounds for investors to intervene in the process.
If the court upholds the petition, XRP holders will be able to act as third-party defendants to defend their interests.
Earlier, Deaton, on behalf of a group of investors, demanded that the US Securities and Exchange Commission (SEC) change the lawsuit against Ripple and stop calling the coin a security. According to him, the regulator "deliberately and deliberately" caused "multibillion-dollar" losses to investors.
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In March 2021, the SEC filed a petition with the court to reject this application. In the document, the department indicated that XRP holders did not provide compelling reasons for abandoning their chosen position.
Recall that in February, the SEC filed a modified version of the lawsuit, focusing on the actions of the co-founder of Ripple Chris Larsen and the CEO of the company Brad Garlinghouse. The latter called the commission's actions " regulatory arbitrariness."
Later, the agency accused Ripple of trying to avoid responsibility for an unregistered offer of securities worth $1.3 billion. According to the SEC, the company's defense distracts the court's attention with untenable arguments.
The regulator also asked six banks for data on personal financial transactions of Larsen and Garlinghouse over the past eight years.
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