Court won’t allow XRP holders to appear as defendants in SEC case against Ripple

October 18, 2021

Court won't allow XRP holders to appear as defendants in SEC case against Ripple

On October 4, the U.S. District Court for the Southern District of New York denied a motion by XRP token holders to participate as defendants in the Ripple lawsuit. However, Judge Analisa Torres allowed them to appear as amici curiae.

BREAKING: Judge Torres grants amici status to @JohnEDeaton1 and Movants, and Denies Motion to Intervene in @Ripple v. @SECGov ADDED to our Document Library:Text of the Order from Judge Torres

According to Torres, the defendants' status would "force the SEC to take enforcement action" against the investors. It would also delay the case, the ruling said.

"The court concluded that amici status would strike an appropriate balance between allowing participants to assert their interests in this case and allowing the parties to control the course of the litigation," Torres said.

In March 2021, Deaton Law Firm founder John Deaton prepared a motion on behalf of 6,000 XRP holders to participate in the proceedings. In his opinion, the investors' interests were not fully represented.

In the same month, the court allowed them to file. In May, the SEC objected to the XRP holders' participation and called them "highly biased."

Earlier, Judge Sarah Netburn rejected Ripple's motion regarding the disclosure of SEC staff's transactions with bitcoin, Ethereum and XRP.

In September, Ripple agreed to turn over internal audio and video recordings to the regulator. The court also ordered the company to allow the Commission access to its employees' Slack messages.

Recall that in October, the regulator demanded that Ripple provide records of meetings in which the firm's CEO Brad Garlinghouse and its co-founder Chris Larsen, as well as other high-level employees, discussed topics related to the lawsuit.

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About the author

Hi there, my name is Zalman Weinberg. I'm enthusiast with over 7 years of experience in cryptocurrencies and blockchain. Professional Trader providing Blockchain solutions to Startups and Enterprises. Expert in all cryptocurrency exchange APIs (BitMEX, Bittrex, Binance, Bitfinex, Kraken, Poloniex, Gdax etc.). I have also worked with multiple Forex broker APIs.

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