US District Judge Dismisses SEC Case Against Ripple Executives
On October 23, 2023, US District Judge Analisa Torres signed an order that officially dismissed the US Securities and Exchange Commission’s (SEC) case against Ripple executives Brad Garlinghouse and Chris Larsen. This landmark order terminates the claims made by the SEC against these Ripple figures, ensuring that similar claims cannot be brought against them in the future over the same matter.
What This Means For The Ripple Execs
According to Fred Rispoli, a pro-XRP attorney and senior managing partner at Hodl Law, the judge’s order of dismissal specifically refers to “Institutional Sales” of XRP by Ripple executives, excluding the other two categories: “Programmatic Sales” and “Other Distributions.” Rispoli argues that this strategic decision provides protection for Garlinghouse and Larsen only regarding Institutional Sales. However, if the SEC were to appeal and reverse the court’s decision on the other categories, the executives could face legal consequences.
Rispoli stated, “If I were Brad Garlinghouse and Chris Larsen, I would have demanded dismissal of ALL claims, not limiting it to Institutional Sales only. If the SEC appeals and overturns ruling on other sales, SEC can still sue BG and CL on those two other categories.”
The SEC’s complaint, filed on December 22, 2020, alleged that Garlinghouse and Larsen unlawfully funneled finances into Ripple through the sale of unregistered XRP, specifically targeting institutional investors. The sales were classified into three categories: institutional, programmatic, and other distributions. Judge Torres ruled that only the institutional sales violated the law, absolving the programmatic sales and other distributions. This ruling initially set the stage for a trial focused on institutional sales, but with the SEC retracting its charges, the trial has been canceled.
Speculation about a Settlement
With the dismissal of the case, speculation is rife in the crypto and legal spheres about a potential settlement between the SEC and Ripple. Legal analysts, including Rispoli, believe that a settlement might be on the horizon. However, it’s important to note that the SEC still has the option to appeal after the final ruling.
At the time of writing, XRP is trading at $0.5426.
– [Law.com](source not mentioned in the article)
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