XRP Lawsuit: Amici Curiae Attorney Claims to have Critical Evidence about Community’s XRP Holdings

By Palak Malhotra
Published November 22, 2021 Updated November 22, 2021
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XRP Lawsuit: Amici Curiae Attorney Claims to have Critical Evidence about Community’s XRP Holdings

By Palak Malhotra
Published November 22, 2021 Updated November 22, 2021

The market is in upheaval with Attorney John E Deaton’s latest tweet about his claims on holding “objective empirical evidence” proving that the majority, amounting to approximately 60% of XRP Holders were unaware of Ripple when they had invested in the token for the first time. Henceforth, according to the Howey Test, it is almost impossible to ascertain that the XRP community was “relying on the promises and inducements of a promoter or company they’re oblivious to”. The SEC is required to answer the crux of the matter, i.e., Why does XRP hold the securities status, by December 6, 2021, making it one of the most critical dates of judgment for XRP holders. 

XRP Holders Suffer because of the lawsuit

Attorney Deaton had been granted the amici curiae status by the court last month, to put forward brief legal questions and concerns on behalf of Individual Movants and the XRP community. While the SEC has continued to assert its claims regarding securities status for XRP and has further alleged the violation of the Securities Act by the defendants in lieu of selling these digital assets. However, the Movants had already contented this stance last month, asserting that if XRP sales are marked as illegal, then the list of culprits extends far beyond Ripple and individual defendants.

Individual Movants argued that the SEC’s case against Ripple “directly attack[s] XRP Holders” through mischaracterizations of XRP Holders’ use of XRP and XRP’s connection to Defendants. Movants contest SEC’s claim that “the very ‘nature of XRP itself’ makes it a security,”, by noting that this will lead to the conclusion that “‘every individual in the world who is selling XRP would be committing a Section 5 violation,’” and so the XRP Holders’ XRP will be affected by the outcome of this litigation.

Despite XRP’s community’s undeniably consistent efforts at fighting the SEC, the XRP token holders are stuck with frozen assets and a comparatively bearish run during one of the fastest bull seasons. Last month, Attorney Deaton approached the court on behalf of the XRP community appealing to deny any further extensions given a large sum of XRP Holders are holding their XRP in retirement brokerage accounts, which has also been “frozen”. XRP holders are unable to touch their funds in any manner, including the inability to withdraw, due to the ongoing lawsuit.

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Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
About Author
Palak Malhotra
409 Articles
Journalism & Mass Comm. ‘21 graduate, Palak is a GenZ journalist with background in Lifestyle journalism & PR. At CoinGape, Palak is a junior crypto journalist preparing for Web 3.0

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