The ongoing legal drama between the SEC and Ripple just took a new turn. Prominent legal expert Fred Rispoli has recently suggested that the chances of an appeal in the high-profile SEC vs. Ripple lawsuit have significantly increased. This assertion follows Ripple’s recent move to request a stay on the monetary aspect of Judge Analisa Torres’ final judgment from August 7.
Ripple’s Strategic Maneuver
In a surprising twist, Ripple has arranged to transfer 111% of the penalty amount—totaling $138.75 million—into an account managed by its legal team. This sum will remain in escrow for 30 days post the deadline for filing an appeal notice or until the conclusion of any appeal. Ripple’s decision to do so has sparked speculation about the likelihood of an appeal.
Rispoli’s analysis indicates that this move could be a strategic play to prepare for potential litigation. He suggests that while this arrangement doesn’t guarantee an appeal, it does underscore Ripple’s uncertainty about the SEC’s intentions. The fact that the SEC’s lawyers haven’t yet confirmed their plans adds to the conjecture.
Potential Appeals from Both Sides
The Ripple lawsuit has been a topic of intense discussion within the crypto community. Many speculate that both parties, particularly the SEC, may seek to appeal. Legal analyst James Murphy has pointed out two significant reasons why the SEC might pursue an appeal: dissatisfaction with the court’s denial of disgorgement and the ruling on XRP programmatic sales.
The SEC’s failure to prove that XRP investors suffered financial harm, combined with the court’s decision against the SEC’s summary judgment request concerning XRP sales, has left the agency with a potential path to appeal. Such a move could set a precedent for other crypto-related cases.
Conversely, Ripple might also consider an appeal due to the injunction imposed on its future XRP sales to institutional clients. Ripple’s recent commendation of the monetary part of the verdict, while neglecting the injunction aspect, has fueled further speculation about its appeal intentions.
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No Official Appeal Yet
Despite the buzz, neither party has officially filed an appeal notice. Legal expert Jeremy Hogan points out that while the decision to appeal hasn’t been finalized, the SEC would have typically filed an appeal notice by now if it were certain. The actual appeal brief would be due within 70 days following the notice—same as for Ripple.
With approximately a month remaining to file an appeal notice, the crypto community is eagerly awaiting whether the case will advance to the Second Circuit. As the legal drama unfolds, both Ripple and the SEC remain under pressure, and the next steps in this case could have significant implications for the cryptocurrency landscape.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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