Ripple’s General Counsel accuses SEC of “rug pull” in XRP lawsuit

Rick Steves

Alderoty ended his statement by explaining that if Ripple didn’t agree to the very long briefing schedule, the SEC would likely cause even longer delays to the case. 

Ripple, the individual defendants, and the SEC have reached an agreement as to the summary judgment briefing schedule as the XRP lawsuit enters a new phase.

All final briefs are due December 20, 2022, which comes as a hard blow to the many parties interested in a quick resolution to the SEC v. Ripple.

Stuart Alderoty, Ripple’s General Counsel, took to Twitter to express his gratitude for the public attention and patience as well as sorrow for the hurt that the XRP lawsuit has caused to “US citizens who were essentially the victims of a rug pull by the SEC”.

His statement includes criticism toward the SEC, Chair Gary Gensler, and a warning that crypto talent, tech, and wealth is moving offshore to safer jurisdictions.

Alderoty ended by explaining that, while Ripple agreed to the briefing schedule, if it didn’t the SEC would likely cause even longer delays to the case.

Full transcript of Stuart Alderoty’s statement:

“To all that have been following the case thus far – thank you. Know that Ripple is pushing hard (and the Court is working hard) to resolve the case as soon as possible, despite the SEC time and again doing everything they can to delay.

It now looks like a resolution will come in 2023 – and each day that passes is hurting US citizens who were essentially the victims of a rug pull by the SEC. $15B in XRP market cap was destroyed the day the suit was filed, hurting the very people the SEC purports to protect.

In Dec 2020 (as Clayton & Hinman packed their bags), the SEC didn’t seek a Court injunction to stop XRP trading in the US when they filed the suit because they knew they couldn’t get one. Effectively, the case has done so anyway – prime example of regulation by enforcement.

Chair Gensler preaches “justice delayed is justice denied” when firms defend themselves from SEC bullying investigations / inquiries – quite the contrast from the SEC using every tactic at their disposal to keep this cloud of uncertainty over the market. Justice delayed indeed.

The Biden EO estimated that 40M Americans own crypto today – no thanks to the SEC who insist on saying that all – or most tokens – are securities, and that US exchanges are running unlawful security exchanges. If you ask which ones? No comment. No disclosure.

Gensler refuses to offer any specifics whatsoever, and the SEC hasn’t sought to shut down any exchange b/c they know they don’t have any real jurisdiction over this $2T industry. In the meantime though – they’ll leverage every tactic to create market confusion.

Already, we’re seeing a massive transfer of crypto talent, tech and wealth moving offshore to jurisdictions with rational regulatory frameworks. Entrepreneurs are being advised to not start their projects in the US. How long can this be allowed to continue?

And to those asking if this is a joint filing – yes it is. But, based on the SEC’s track record, if we didn’t agree to this, the next iteration would have very likely been even longer.”

Read this next

Executive Moves

TopFX promotes Omar Al-Janabi to head of sales and business development

Prime brokerage firm TopFX has strengthened its Middle East operations with the promotion of Omar Al-Janabi, who is taking on an expanded role as global head of sales and business development.

Retail FX

Plus500 says 2022 revenue to be ‘significantly’ ahead of analysts’ estimates

Israeli-based, but London-stock market listed Plus500 said it expects annual revenue and earnings to be ahead of analysts’ estimates even as trading levels normalised from record volumes in the first quarter.

Digital Assets

Crypto derivatives giant BitMEX launches spot market

Crypto exchange BitMEX is looking to branch out of its singular focus on crypto derivatives with a suite of new product offerings. Although derivatives are to remain at the heart of BitMEX’s business, the popular platform will add spot crypto trading as it aims to aggressively grow their user base.

Uncategorized

PrimeXM reports mixed trading volumes for April

PrimeXM has reported weaker trading volumes for April 2022, in line with other institutional and retail platforms that saw the activity of their clients dropped compared to a month earlier.

Digital Assets

DLT Finance approved by BaFin to support brokerage and custody of digital assets

DLT Finance is already partnered with big names within the digital asset space, including Kraken, Bitstamp, B2C2, and Bittrex.

Institutional FX

LUKB taps vestr to launch actively managed products, AMCs

The partnership with vestr goes to show the growing importance of digitising the active investment management space.

Digital Assets

Jewel taps Tokeny to launch stablecoin-as-a-service solution on Polygon

Jewel aims to offer a stablecoin-as-a-service solution to other digital asset and financial institutions B2B, allowing those businesses to provide cheaper, easier and near real time payments with stablecoins issued and redeemable directly at the bank level at Jewel.

Industry News

SEC charges $410+ million Ponzi scheme with pre-IPO shares

We allege that the defendants deceived investors about the pre-IPO shares they held, how much they were charging in fees, and who was controlling the business—all while paying themselves more than $75 million.

Industry News

FNZ taps data analytics GIST to address ESG ratings bias

The allocation of capital is critical to driving the change required to transition to net-zero and building a more sustainable economy and society.

<