• Ripple Labs is currently being sued by the US Securities and Exchange Commission (SEC) as well as XRP investors in a class action lawsuit.
• The class action lawsuit alleges that Ripple sold XRP as an unregistered security and seeks damages for losses suffered from the sale and alleged promises.
• Attorney John E. Deaton has now been involved with the Zakinov vs. Ripple case, filing an amicus brief in which he argues against certifying the class due to conflicts among token holders worldwide.
Background on Ripple’s Legal Issues
The U.S. Securities and Exchange Commission (SEC) has filed a lawsuit against Ripple Labs, accusing it of selling unregistered securities in the form of its cryptocurrency XRP. Additionally, there is also a class action lawsuit pending since November 2018, led by lead plaintiff Bradley Sostack, that accuses Ripple of selling XRP as an unregistered security and seeks damages for losses suffered from the sale and alleged promises made by Ripple. The plaintiffs are also asking the court to classify XRP as a security.
Deaton Gets Involved
Prominent criminal defense attorney James Filan recently announced that attorney John E. Deaton is now filing an amicus brief in Zakinov vs. Ripple to represent XRP holders around the world who disagree with the plaintiffs’ argument that XRP is a security. This proposed class would include not only direct sales by Ripple but all sales of XRP, including secondary sales and international sales where XRP has already been classified as not being a security.
Deaton’s Argument Against Certifying Class
In his motion, Deaton argues that there are only a small number of holders who claim that XRP is an unregistered security, while vastly more token holders worldwide claim that it is not; therefore, he argues against certifying this class due to these conflicts among token holders worldwide..
Implications for Both Cases
The involvement of Deaton could have implications for both cases: The SEC’s case against Ripple Labs and the ongoing class action lawsuit from investors seeking compensation from their investment in XRP tokens over time. It remains to be seen how this motion will affect proceedings going forward but it certainly adds another layer of complexity to both cases overall..
Given all these developments, it’s clear that both sides continue to battle over whether or not Ripple’s offerings constitute an unregistered security with numerous legal experts arguing for both sides of this issue at present day; however until further clarity is provided on either side we remain without any definitive answers on this matter just yet..