Ripple Vs. SEC: Crypto CEO Predicts SEC Will Drop Charges Against Executives
October 06 2023 - 1:00PM
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The civil trial of the US Securities and Exchange Commission’s
(SEC) case against Ripple and its top executives, Brad Garlinghouse
and Chris Larsen, is set to commence on April 23, 2024. However,
the Founder of Dizer Capital, Yasin Mobarak, believes that the SEC
will withdraw its charges against Garlinghouse and Larsen before
then. Why The SEC Will Drop Charges Against Ripple Founders In a
tweet shared on his X (formerly Twitter) platform, Mobarak stated
that the reason for his prediction is that it is not in the SEC’s
interest to have “a trial where their corruption can be exposed.”
He further stated that the Commission’s “agenda” is bigger than
these two executives. Prediction: The SEC will withdraw charges
against @bgarlinghouse and @chrislarsensf . It is not in their
interest to have a trial where their corruption can be exposed, not
to mention their agenda is far bigger than just these two
executives. The longer $XRP solidifies the… — Yassin Mobarak 🪝
(@Dizer_YM) October 4, 2023 Garlinghouse and Larsen were joined as
co-defendants when the SEC filed a lawsuit against Ripple in
December 2020. The Commission alleged that the executives
structured and promoted the XRP sales to finance the company’s
business. Additionally, it accused both individuals of effecting
“personal unregistered sales of XRP totaling approximately $600
million.” Mobarak shares similar sentiments with pro-XRP legal
expert Fred Rispoli, who stated that the SEC is unlikely to pursue
a trial against them and outlined reasons for his assertion. One of
the reasons he gave was that the SEC would not want a situation
where its credibility is questioned, which he believes could happen
if someone like the former SEC Director Bill Hinman was called to
testify. The SEC filing a motion for an interlocutory appeal
was considered by many as a means to prolong the trial
unnecessarily, which Judge Analisa Torres had reasoned in her
order. Following the denial of this appeal, Mobarak believes that
the SEC will now move to end this case quickly so it can appeal to
the Court of Appeals and “continue to sustain this cloud of
uncertainty on the whole industry.” XRP price drops below $0.52 |
Source: XRPUSD on Tradingview.com SEC Needs An Incentive To Do So
In response to Mobarak’s tweet, another X user mentioned that it
would be surprising if the SEC decided to drop the charges against
Ripple’s executives “without some incentive from Ripple given to
them.” Such an incentive would likely relate to the crypto firm
agreeing to a form of settlement. This is something that
Rispoli had suggested when he said that the SEC didn’t intend to
maintain a suit against Garlinghouse and Larsen but simply wanted
to pressure the company into a “weak settlement.” However, it
is unlikely that Ripple is willing to reach any form of settlement
with the Commission as Ripple’s President Monica Lang asserted that
her company intends to see the case “all the way through.”
Moreso, there is no reason why Ripple should be willing to settle,
considering that they already scored two major victories against
the SEC and seem to have the upper hand now. Ripple and its
executives will also have it at the back of their mind that the
crypto community is looking to this case for clarity, as any
judgment will likely set a precedent for how the crypto industry
should be regulated. Featured image from Bit Stalking, chart from
Tradingview.com
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