The lawyers representing Ripple CEO penned a letter to dismiss the lawsuit filed by the SEC against him in December
According to information shared by Ripple CEO Brad Garlinghouse, it seems that the company side is deciding to dismiss the SEC’s lawsuit against his company and XRP.
The Ripple CEO filed a petition dismissing the SEC lawsuit
Attorneys representing Ripple CEO Brad Garlinghouse wrote a letter to Federal Judge Analisa Torres, signaling the operator’s intention to dismiss the U.S. Securities and Exchange Commission’s lawsuit. against him in December.
The letter stated that the SEC filing a lawsuit against Garlinghouse is regulatory overreach.
The SEC disclosed the first amended complaint against Garlinghouse and former chief executive Chris Larsen, alleging that it could manipulate the XRP market with its sales.
Garlinghouse’s attorneys claim that the revised version of the lawsuit is no better while not recognizing the economic realities of the XRP sales in question while they believe it cannot be fully accused. intentions or knowledge of misconduct.
The letter stated:
“The SEC has the burden to demonstrate that Mr. Garlinghouse either knew or recklessly disregarded that he was associating himself with something improper and nonetheless substantially assisted Ripple in committing that violation.”
Ripple also made its long-standing argument that XRP was recognized as a “virtual currency” by the Financial Crime Enforcement Network (FinCEN) in 2015. However, the office’s own guidance states that Cryptocurrencies may also qualify for security under federal security laws.
In the lawsuit against Ripple and its executives, the SEC implied that XRP is unregistered security.
The letter also hinted that the SEC was unable to identify Garlinghouse’s related transactions in the US, claiming that the majority of his purchases took place on foreign exchanges.
The letter stated:
“The SEC cannot save its pleadings by arguing that Mr. Garlinghouse’s offers or sales are domestic simply because either he or XRP purchasers (the location and identity of which Mr. Garlinghouse was unaware) may have been physically present in the United States at the time of the transactions.”
The revised complaint mentioned that Garlinghouse sold its tokens on at least four consolidated US exchanges.
You can see the XRP price here.
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