The lawyer representing XRP holders in the lawsuit against the U.S. Securities and Exchange Commission (SEC) says that the regulatory body is demanding hundreds of millions of dollars to settle.
In a lengthy post on the social media platform X, attorney John Deaton says that the SEC wants a staggering $770 million “worth of flesh” to settle its lawsuit against Ripple Labs, a firm that it accused of selling unregistered securities.
“The SEC is pissed and embarrassed and wants $770 million worth of flesh.
What people need to understand is that the penalty phase is like a second case requiring more depositions, interrogatories, 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 exclude ODL transactions, reduce salaries, expenses, costs, etc.”
Deaton goes on to explain that Ripple’s settlement with the SEC hinges on whether or not Coinbase – another crypto firm being used by the regulatory body – has its motion to dismiss granted.
“I don’t expect a final judgment, issued by Judge Torres, until late summer, at the earliest. It literally could take a full year before an appeal is filed in this case. If Coinbase wins its MTD (motion to dismiss), I then believe the SEC will be forced to pivot its anti-crypto agenda and then work out a possible settlement with Ripple.
If Coinbase loses its MTD, I predict no settlement. January 17, 2024, is the oral argument on the Coinbase motion. A ruling is likely 60-120 days later.”
However, according to Deaton, Ripple will do everything in its power to cut down the $770 million demanded by the SEC, adding that he believes the crypto firm 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 motion to appeal the ruling.
Last week, the SEC dropped its aiding and abetting charges against executives of Ripple Labs, causing the price of XRP to spike to $0.52 at the time.
XRP is trading for $0.54 at time of writing, a 2.5% dip during the last 24 hours.