This FOIA Complaint Against SEC May Free XRP

The latest update in the securities fiasco saw the nonprofit organisation, Empower Oversight file a Freedom of Information Act (FOIA) complaint against the SEC in regards with its potentially illegal market manipulation to hike Ethereum and Bitcoin, while slashing the price for XRP with a lawsuit.

The plaintiff has appealed the court to compel the SEC for discovery of all records maintained by the SEC, including conversations between Hinman and the ETH alliance – Simpson Thatcher, and the Ethics Office. Furthermore, the complaint also appealed for all record of discussions between the former SEC official, Marc P. Berger and Simpson Thatcher, along with the Ethics Office, and at last, XRP lawsuit official, Clayton and One River and the Ethics Office.

The Trail of SEC Secrets

While the combinations may be complex, but the crux of the case is rather simple, which is to determine that the SEC and its officials were allegedly part of illegal market manipulation, for both, hike and crash of three cryptocurrencies, by categorising them as either cryptocurrencies, or securities. The plaintiff’s letter provided a detailed chronology of why it is possible that the SEC intentionally planned and plotted the entire thing –

1. It started June 6, 2018, when the former SEC Chairman, Jay Clayton before leaving the SEC, publicly stated that Bitcoin was not a security, which in turn led to a significant hike in Bitcoin’s value. Shortly after he left the SEC, Clayton joined One River Asset Management, a cryptocurrency hedge fund that focuses exclusively on Bitcoin and Ether
2. Then came Hinman’s June 14, 2018 speech where he declared that the Ethereum cryptocurrency, Ether, was not a security. Hinman made this statement while he was actively working as an SEC official. His speech in turn led to a sharp hike in Ether’s price.
3. Hinman left the SEC in 2020, however, according to the FOIA compliant’s content, he reportedly continued to receive millions of dollars from Simpson Thacher while at the SEC.
4. The law firm, Simpson Thatcher is a member of the enterprise Ethereum Alliance. Hinman was previously a partner at Simpson Thatcher, before joining the SEC, and rejoined Simpson Thacher as a partner post his departure from the commission.
5. December 2020, which is the same month as to Hinman’s exit from the commission, the SEC filed a lawsuit against one of Ethereum’s rivals, Ripple, alleging that its XRP cryptocurrency was a security. The value of XRP fell 25% immediately after the SEC’s announcement of the lawsuit.
6. Shortly after filing the lawsuit, the leader of the SEC Enforcement Division, Marc Berger, left the SEC and joined Hinman as a partner at Simpson Thacher.