{"id":202408,"date":"2021-03-15T13:35:50","date_gmt":"2021-03-15T10:35:50","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/over-6000-xrp-holders-volunteer-as-third-party-defendants-in-sec-lawsuit\/"},"modified":"2021-03-15T13:35:50","modified_gmt":"2021-03-15T10:35:50","slug":"over-6000-xrp-holders-volunteer-as-third-party-defendants-in-sec-lawsuit","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/over-6000-xrp-holders-volunteer-as-third-party-defendants-in-sec-lawsuit\/","title":{"rendered":"# Over 6,000 XRP holders volunteer as third party defendants in SEC lawsuit"},"content":{"rendered":"

“# Over 6,000 XRP holders volunteer as third party defendants in SEC lawsuit <\/strong>”
\n<\/p>\n

XRP coin holders have attempted to insert themselves as third-party defendants in the United States Securities and Exchange Commission\u2019s lawsuit against Ripple Labs.<\/p>\n

A motion<\/a> to intervene was filed by John Deaton of Deaton Law Firm on March 14 on behalf of over 6,000 XRP holders. Deaton \u2014 himself an XRP holder \u2014 argued that the interests of coin holders were not being adequately represented in the securities lawsuit against Ripple Labs and its executives.<\/p>\n

Deaton\u2019s argument builds upon the refutation of any securities violations by Ripple Labs. Specifically, if XRP is not a security, as Ripple executives Bradley Garlinghouse and Christian Larsen claim, then the efforts of said executives have no bearing on the performance of XRP. <\/p>\n

For this reason, Deaton, along with over 6,000 concerned coin holders, have moved to intervene as third-party defendants. The filing states:<\/p>\n

\u201cGiven SEC\u2019s own statements that this Court is the exclusive forum to hear claims regarding this matter, and Ripple\u2019s position that XRP holders cannot rely on Ripple\u2019s efforts as protection of their interests in this case and the nature of Ripple\u2019s defense, the XRP Holders\u2019 intervention is necessary.\u201d<\/p><\/blockquote>\n

In an announcement<\/a> posted to Deaton\u2019s website Crypto-Law on March 14, the lawyer and cryptocurrency enthusiast claimed that XRP holders had suffered $15 billion in losses in the days immedia<\/a>tely following the SEC\u2019s announcement of its lawsuit against Ripple Labs. In the two weeks following the commencement of the lawsuit, the XRP coin price sunk 76% from $0.76 down to $0.18. <\/p>\n

The falling coin price was triggered in part by the decision of major cryptocurrency exchanges to delist XRP in the wake of the lawsuit. Numerous major exchanges including Binance.US, eToro, Coinbase, Bittrex and OKCoin removed XRP from their respective platforms. Investment services such as Grayscale also liquidated XRP holdings, choosing to convert them into more Bitcoin (BTC), Bitcoin Cash (BCH) and Litecoin (LTC).<\/p>\n

In January, Deaton, on behalf of XRP holders, filed a petition asking that the SEC distinguish between the XRP sales carried out by Ripple executives, and the XRP purchases made by individual coin holders on secondary exchange markets. The filing also requested that any funds received from a possible Ripple settlement be diverted to a collective trust for use by XRP holders who incurred losses due to the SEC\u2019s actions. The request was dismissed by the SEC.<\/p>\n

On March 11, Ripple executives Garlinghouse and Larsen refuted the SEC\u2019s demands to investigate the finer details of their personal finances. Garlinghouse and Larsen called for a protective order to block an investigation into their personal accounts, arguing that their personal and professional finances were not intertwined. The legal team also called for courts to quash subpoenas issued to six banks used by Garlinghouse and Larsen.<\/p>\n