The attorney representing XRP holders in the lawsuit against the U.S. Securities and Exchange Commission (SEC) says the regulatory agency is seeking hundreds of millions of dollars to settle.
In a lengthy post on social media platform X, attorney John Deaton says say that the SEC wants as much as $770 million in “meat” to settle the lawsuit against Ripple Labs, a company it accused of selling unregistered securities.
“The SEC is angry and embarrassed and wants $770 million worth of meat.
What people need to understand is that the penalty phase is a secondary case that requires more depositions, interrogations, requests for the production of documents, emails, bank statements, contracts, ODL (on-demand liquidity) transactions, etc.
Ripple wants to drastically reduce the $770 million by trying to eliminate ODL transactions, reduce salaries, expenses, costs, etc.”
Deaton further explains that Ripple’s settlement with the SEC depends on whether or not Coinbase – another crypto company used by the regulatory body – is granted a motion to dismiss.
“I don’t expect a final ruling from Judge Torres until late summer at the earliest. It could literally take an entire year before an appeal is filed in this case. If Coinbase wins its MTD (motion to dismiss), I believe the SEC will be forced to reverse its anti-crypto agenda and then work out a possible settlement with Ripple.
If Coinbase loses its MTD, I don’t predict a settlement. January 17, 2024 is the oral argument on the Coinbase motion. A ruling will probably follow 60 to 120 days later.”
However, according to Deaton, Ripple will do everything it can to reduce the $770 million demanded by the SEC. believes the crypto company will be successful.
Earlier this month, the same judge who ruled that retail sales of XRP do not count as securities also denied the SEC’s request to appeal the ruling.
Last week, the SEC dropped charges against Ripple Labs executives, causing the price of XRP to rise to $0.52 at the time.
XRP is trading at $0.54 at the time of writing, down 2.5% over the past 24 hours.
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