In the ongoing legal saga between Ripple and the Securities and Exchange Commission (SEC), Pro-XRP lawyer, Bill Morgan, has stepped forward to provide insights into the potential impact of the regulatory body’s recent allegations. As tensions continue to rise, Morgan’s analysis sheds light on the challenges Ripple faces through legal scrutiny.
Morgan’s comments revolve around the SEC’s accusations aimed at Ripple, particularly concerning the crypto firm’s ‘alleged’ preferential treatment towards institutional investors.
The SEC’s latest brief alleges that such preferential discounts given by Ripple could have resulted in harm amounting to a staggering $480 million for investors left out of these arrangements.
Morgan has expressed reservations about the stance taken by the SEC. He believes that it is necessary to scrutinize the evidence behind the allegations and questions the validity of the SEC’s assertions. He highlights the apparent lack of evidence regarding the causation of the alleged wrongdoing.
Morgan is also concerned about the potential damage to Ripple’s reputation among institutional investors. The revelation of selective discounts raises questions about the company’s compliance with regulatory standards, particularly regarding disclosure requirements. Such issues could further complicate Ripple’s legal proceedings and erode investor trust in the company.
The SEC has escalated its efforts by appealing to Judge Torres for a final judgment against Ripple. The regulatory agency is seeking a range of punitive measures, including permanent injunctions, disgorgement, prejudgment interest, and civil penalties totalling nearly $2 billion.
