Breaking: Former SEC Chair Clayton Slapped With Lawsuit Over Ripple

Ashish Kumar
April 14, 2022
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Ripple investor sues former SEC execs

A class action lawsuit was filed against former  SEC Chairman Jay Clayton and executive Bill Hinman over their alleged mismanagement of the Ripple (XRP) case. The lawsuit alleges the two violated federal regulations in their persecution of XRP.

The US SEC vs Ripple lawsuit has been going on for nearly two years. Recent rulings seem to be going in the favor of the defendants. The last judgment proved that the commission was confused regarding some important aspects of the case. In a big development,

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Clayton And Hinman allegedly conspired to destroy Ripple

On April 11, 2022, Attorney Fred Rispoli, representing XRP investor Shannon O’Leary, filed a class action against the former executives. Rispoli said they had decided to take a stand against the tortious interference done by officials against Ripple, which had damaged the finances of Ripple investors.

The lawsuit further alleges that Clayton and Hinman’s persecution of Ripple was driven by the interests of third parties who stood to benefit from Ripple’s closure. Rispoli said the claims under the lawsuit exceeded $5 million.

SEC’s case against Ripple has already thousands of Ripple community people filing multiple class action lawsuits against the SEC. But the class action marks the first time that SEC officials have been individually targeted.

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XRP: A big threat to ETH?

In a Twitter thread, Rispoli said that both SEC executives had their conspiracy to knock down the XRPL network. He added that Hinman and Clayton knew that XRP was a big threat to their previous clients.

The complaint alleges the officials influenced the SEC not to probe the similar Ethereum Network. Interestingly, it added that Clayton and Hinman’s prior and recent clients had multi-billion stakes in the Ethereum. However, it also alleged that both of the officials were hired directly by the firms that heavily invested in the ETH network. Rispoli mentioned that defendant’s conduct caused the plaintiff’s business expectancy of at least $42 Billion in the XRPL Network.

In the recent judgment, the court refused the SEC’s view to treat Hinman’s infamous ETH speech as guidance to evaluate digital asset offerings. The judge mentioned that now the commission is confused over its stance regarding the speech. The SEC avoided taking the responsibility for Hinman’s address.

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Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
Ashish believes in Decentralisation and has a keen interest in evolving Blockchain technology, Cryptocurrency ecosystem, and NFTs. He aims to create awareness around the growing Crypto industry through his writings and analysis. When he is not writing, he is playing video games, watching some thriller movie, or is out for some outdoor sports. Reach me at [email protected]
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.