Ripple shares sold out ahead of key events in XRP lawsuit

Rick Steves

The court case could make XRP the only crypto asset with regulatory clarity in the United States.

Linqto, a private investment platform, is sold out of Ripple shares, said Nick Burrafato, Director of Digital Assets. Demand for Ripple Labs Inc. equity has been notably high in recent weeks as developments in the XRP lawsuit could give Ripple the upper hand against the SEC.

Ripple also showed signs of optimism, having bought back shares it issued after securing $200 million in a Series C funding round led by Tetragon, with participation from SBI Holdings and Route 66 Ventures.

The fundraiser of late 2019 valued Ripple at $10 billion, but the company bought the shares back at a $15 billion valuation, thus offering a 50% profit. The move also helped the firm to take back equity from Tetragon, who sued Ripple for $175 million after the SEC filed the infamous lawsuit.

What is coming?

The schedule in the SEC v. Ripple lawsuit is about to offer key reveals for the future of Ripple, XRP, and the cryptocurrency space.

The deadline to unseal Ripple’s memos publicly is February 17th, 2022. The same day, the SEC will file its motion for partial reconsideration over Judge Sarah Netburn’s DPP ruling, which will not be fully briefed until February 25, 2022. Ripple as one week to respond to that motion.

On top of that, Ripple wants the SEC to hand over the notes from the meeting between Brad Garlinghouse and ex-SEC Commissioner Elad Roisman. The agency claims it didn’t even know of its existence but it also says it is protected by DPP. A “Hail Marry”, according to Jeremy Hogan, Partner at Hogan & Hogan P.A.

What to expect?

As to Ripple’s memos, it could be said that the two exhibits fail to prove that and its executives were selling and marketing XRP as an investment contract within the SEC’s jurisdiction. See article 1 and article 2 on the matter.

In regard to the SEC’s deliberative process privilege, the plaintiff is expected to drag the issue as much as possible, but the court is likely to side with Ripple on that. The concern is that the SEC could be able to delay the production for months, but when it finally does, Ripple might uncover enough material to end the lawsuit quickly. See article 3 and article 4 on the matter.

The most recent play by Ripple was the motion to compel the production of the “Estabrook Notes” regarding a 2018 meeting between Brad Garlinghouse and former SEC Commissioner Roisman.

The notes, which are unlikely to be protected by DPP, may prove useful to the fair notice argument as Roisman is known to be a critic of the SEC’s enforcement practice in the blockchain space. See article 5 on the matter.

Also in regard to the survival of the fair notice defense, Ripple filed a sur-reply showing that the 75 cryptocurrency enforcement actions support Ripple’s argument, not the SEC’s.

Read this next

Digital Assets

BlockDAG Presale Raises $9.9M as Batch 5 Nears Sell-Out Amid Bonk’s Fluctuating Trading Volume & Spell’s Bullish Price

Explore BONK’s trading volume, SPELL’s market shifts, and why BlockDAG’s 10,000 ROI makes it an ideal crypto for savvy investors in 2024.

Digital Assets

Cathie Wood’s sponsored Bitcoin ETF sees historic $200 million inflows

The ARK 21Shares Bitcoin ETF (ARKB), co-sponsored by Cathie Wood’s ARK Invest, registered historic inflows exceeding $200 million on Wednesday, signaling a robust appetite among investors for Bitcoin-centric investments.

Digital Assets

Sam Bankman-Fried might see his 25-year sentence halved

Sam Bankman-Fried, the founder of the failed cryptocurrency exchange FTX, was sentenced to 25 years in federal prison by a Manhattan court on Thursday. This comes after he was convicted of defrauding customers and investors, with Judge Lewis Kaplan highlighting the potential future risks posed by Bankman-Fried.

Technical Analysis

EURJPY Technical Analysis Report 28 March, 2024

EURJPY currency pair under the bearish pressure after the pair reversed down from the major resistance level 164.25, which also stopped the sharp weekly uptrend at the end of last year,

Digital Assets

BlockDAG’s Presale Hits $9.9M, MultiversX & MINA Price Predictions Show Green

Read about BlockDAG’s promising $10 prediction and insights on MultiversX Price Prediction as MINA’s potential unfolds.

Digital Assets

Rockstar Co-Founder and All-star Line Up Join Advisory Board to Take Metacade into Post Beta Orbit

Metacade, the revolutionary Web3 gaming platform, prepares to streak out of beta with a slew of ground-breaking initiatives that will redefine the way blockchain games are developed.

Retail FX

Prop firm The Funded Trader shuts down, claims relaunch in April

Prop trading firm The Funded Trader has ceased all operations, with claims for a relaunch in the near future.

Digital Assets

Ethereum-Based Tokenized Real Estate Platform USP Launches On Republic

How This Californian Startup Is Revolutionizing Real Estate Investment through Ethereum-Based Tokenization.

Digital Assets

Sui Spikes in Weekly DEX Volume, Joins Top 10 of All Blockchains

March DEX volume on Sui stands at over $2.88B – up more than 49% from February – with decentralized exchange Cetus and wholesale liquidity layer DeepBook leading.

<