{"id":9292,"date":"2024-03-26T23:14:20","date_gmt":"2024-03-26T23:14:20","guid":{"rendered":"https:\/\/www.bitrabo.com\/discover\/pro-xrp-lawyer-sees-40-settlement-odds-for-ripple-sec-after-ruling\/"},"modified":"2024-03-26T23:14:20","modified_gmt":"2024-03-26T23:14:20","slug":"pro-xrp-lawyer-sees-40-settlement-odds-for-ripple-sec-after-ruling","status":"publish","type":"post","link":"https:\/\/www.bitrabo.com\/discover\/pro-xrp-lawyer-sees-40-settlement-odds-for-ripple-sec-after-ruling\/","title":{"rendered":"Pro-XRP Lawyer Sees 40% Settlement Odds For Ripple-SEC After Ruling"},"content":{"rendered":"

In an escalation of the ongoing legal battle between Ripple Labs and the US Securities and Exchange Commission (SEC), the regulatory agency has advanced its position by filing<\/a> a Motion for Remedies and Entry of Final Judgment, which notably includes a request for a $2 billion penalty against Ripple.<\/p>\n

Fred Rispoli, a pro-XRP lawyer and founder of HODL Law, has provided a detailed analysis<\/a> of the SEC\u2019s motion through a series of comments on X (formerly Twitter). Rispoli\u2019s breakdown offers an insider perspective on the potential outcomes and strategies at play.<\/p>\n

He noted, \u201c#XRPcommunity The SEC\u2019s motion for judgment has been publicly filed. TLDR: SEC is following the playbook I outlined two months ago,\u201d reflecting on the predictability of the SEC\u2019s actions but also underscoring the gravity of the situation for Ripple.<\/p>\n

<\/span>SEC Puts Ripple In Trouble<\/span><\/h2>\n

Rispoli\u2019s analysis highlights several key points from the SEC\u2019s filing, with particular emphasis on the claim that Ripple offered significant discounts on XRP sales to certain institutional buyers. The SEC argues that there were two groups of institutional sales investors while Ripple offered one group significant discounts in XRP price over the other group that did not receive them.<\/p>\n

This practice, according to the SEC, not only skewed some institutional sales investors but also potentially disadvantaged retail investors. The lawyer credited the agency for this tactical move.<\/p>\n

\u201cIt realized that it needs to show how investors were actually harmed. Ripple has already said the SEC\u2019s motion is full of mischaracterizations. Let\u2019s hope that is correct because the picture painted is not a good look for Ripple and lends credence to the XRP haters on why the price is so low. Namely, the deep discounts by Ripple on XRP sales,\u201d Rispoli stated.<\/p>\n

At the same time, he expressed concerns over these revelation, stating, \u201cIf discounts are wide enough, then Institutional Buyers (like GSR) scored unbelievable discounts and have bags-upon-bags of XRP that they could continually sell at astronomical profit,\u201d pointing to a potential imbalance in the investment landscape fostered by Ripple\u2019s actions.<\/p>\n

Furthermore, Rispoli shed light on the SEC\u2019s portrayal of Ripple\u2019s business practices, notably the company\u2019s continuation of XRP sales as its primary revenue source, even after legal scrutiny intensified. He elaborates, \u201cSEC claims the financial discovery it received by court order demonstrates this is by far and away Ripple\u2019s primary source of revenue,\u201d suggesting a critical view of Ripple\u2019s dependency on these sales amidst ongoing litigation.<\/p>\n

Meanwhile, the document also reveals that Ripple is still signing contracts with institutional buyers. Since the start of the XRP lawsuit in December 2020, the company has signed 80 contracts.<\/p>\n

<\/span>Pro-XRP Lawyer Predicts Two Possible Outcomes<\/span><\/h2>\n

The classification of Ripple\u2019s On-Demand Liquidity (ODL) transactions represents another crucial aspect of Rispoli\u2019s analysis. The legal determination of whether these transactions constitute unlawful sales or are permissible under law is a significant factor that could influence Ripple\u2019s operational latitude.<\/p>\n

\u201cStakes are very high here,\u201d Rispoli asserts, adding, \u201cwe have to hope Ripple has sufficiently changed its business practices to account for Torres\u2019 ruling.\u201d<\/p>\n

The potential consequences of the SEC\u2019s motion are profound, with Rispoli speculating on the likelihood of a settlement. He assessed, \u201cThis motion is of enormous consequence,\u201d with two options on how this ends:<\/p>\n

\n

One, the amount ordered by the court is low enough and rulings on newly-structured sales favorable enough (to Ripple) that there is a final settlement after the ruling. I\u2019m now putting this at 40% odds. More likely is this will come out favorable to Ripple on the amount of money owed but that Ripple takes hits on what is allowed going forward, meaning this is going to an appeal to the 2nd.<\/strong><\/p>\n<\/blockquote>\n

At press time, XRP traded at $0.63.<\/p>\n