SEC against Ripple: opposition brief and Ripple strike motion
XRP was outperforming the broader crypto market entering the weekend. From Monday, April 12 to Saturday, April 27, XRP declined by 0.08% to $0.5244.
Activity related to the SEC versus Ripple case has attracted investor attention throughout the week. Ripple published a redacted version of its opposition brief on Tuesday, April 23. The opposition brief challenged the SEC’s allegations that Ripple continued to violate U.S. securities laws after the December 2020 complaint.
Ripple emphasized that it was limiting post-complaint XRP sales to ODL sales. Ripple also emphasized that its ODL contracts protect buyers from losses and prevent profits.
The opening brief also cited U.S. case law to oppose the SEC’s push for $2 billion in disgorgement and injunctive relief. These include SEC v. Govil, in which the court ruled that the SEC could not seek crippling disgorgement without proving that investors suffered actual financial harm. It is important to note that the SEC was unsuccessful in overturning the decision. The US appeals courts upheld the decision in April 2024.
Ripple also filed a delisting petition on Monday, April 22. The motion to strike asked the court to strike the SEC’s submissions supporting its opening brief.
Ripple argued that the SEC provided new testimony and exhibits in support of its efforts for punitive restitution and injunctive relief. SEC accountant Andrea Fox analyzed Ripple’s financial statements and other documents to arrive at the $2 billion penalty. The SEC did not disclose the identity of the expert witness or his testimony during discovery.
Several SEC legal filings are on the horizon. Next week, the SEC is expected to file its brief in opposition to the strike motion. The SEC must also file its response to Ripple’s April 22 opposition brief by May 6.
