- Gasparino suggests the legal dispute may directly impact Ripple’s wealth.
- XRP is down 2.26% and expected to fall further.
- The SEC wants the courts to ban Ripple from selling XRP to institutional investors beyond the $2 billion penalty.
A Fox Business reporter named Charles Gasparino has warned XRP holders on the X social network amid a legal dispute between Ripple Lab and the SEC. Gasparino has been implying that Ripple’s wealth may be directly impacted by their ongoing legal dispute.
Investors in XRP may lose a significant amount of money because Gasaprino nearly guarantees that Ripple will lose its legal battle with the SEC. XRP is down by roughly 2.26% today to support the claims, but a more significant decline is anticipated.
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The SEC has requested the courts to prohibit Ripple from selling XRP to institutional investors beyond the $2 billion penalty. However, the opening brief did not isolate post-complaint XRP sales to US institutional investors, which could allow Ripple to forcefully oppose the argument to prohibit XRP sales and the $2 billion penalty.
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Ripple must demonstrate that it made no post-complaint XRP sales to US institutional investors and show the total proceeds from XRP sales to US institutional investors from the total pre-complaint proceeds of $729 million.
Recent Progressions in the Case
It could be crucial that the Supreme Court rules that the SEC only has authority over sales to US institutional investors. By April 22nd, Ripple has to submit the opposition brief, and by April 24th, it has to release the redacted version. In the interim, keeping an eye on the SEC’s ongoing investigation into cryptocurrency conflicts of interest is essential.
According to reports, the Office of Inspector General (OIG) is drawing the curtain on its inquiry into potential conflicts of interest in cryptocurrency within the SEC, specifically about William Hinman, a key player in the SEC v. Ripple case.
In 2021, Empower Oversight sued the SEC, claiming its former employees were biased against XRP and Ripple Lab. While advising the SEC on cryptocurrency regulations in the securities litigation, Hinman, the former director of the SEC, received millions of US dollars from Simpson Thacher, the legal firm. The Hinman documents state that despite the Ethics Division of the SEC’s warnings, Hinman went ahead and met with Simpson Thacher.
Empower Oversight submitted a FOIA request to obtain information about Hinman and former SEC Chair Jay Clayton, who brought charges against Ripple on his last day in office. In the coming months, the results of the IG investigation are scheduled to be revealed.
