The ongoing legal battle between the SEC and Ripple took a heated turn on April 29th, with the SEC filing a motion to oppose Ripple’s attempt to strike down the declaration of their summary witness, Adrea Fox. Ripple previously argued that the declaration constituted undisclosed expert testimony, a claim the SEC vehemently denies.
Renowned crypto lawyer Bill Morgan dissected the SEC’s recent filing, highlighting key points. According to Morgan, the SEC asserts that Fox’s declaration isn’t expert evidence but rather a summary of Ripple’s financial records, which Ripple itself doesn’t contest.
Furthermore, Morgan points out the SEC’s argument that Fox didn’t offer an opinion on whether institutional buyers suffered financial harm. He suggests that Fox likely relayed what legal counsel instructed, emphasizing that the question of financial harm based on varying discount levels is ultimately a legal one.
Morgan believes that regardless of the court’s decision on the motion, the SEC’s stance on financial harm appears weak. He likens the situation to customers complaining about profits made with Ripple but not exceeding those of others.
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This latest development adds another layer of complexity to the already intricate case. Morgan draws parallels between the SEC’s approach and their alleged negligence in the Sam Bankman-Fried and FTX debacle. He criticizes the SEC for claiming to protect investors from missed opportunities for higher profits while failing to safeguard them from FTX’s fraudulent activities.
The SEC, in its filing, maintains that the purpose is to assist the court by presenting calculations summarizing Ripple’s financial records and sales data. Additionally, they aim to quantify the “ill-gotten” gains and the accrued prejudgment interest associated with them.
This back-and-forth between the SEC and Ripple signifies the heightened tensions in the ongoing legal battle. The outcome of this motion and the broader case will undoubtedly have significant implications for the cryptocurrency industry as a whole.
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