Ripple Cites Court Decision on Voyager Digital Sales Plan in SEC Case

banner-image

Ripple Labs has referred to the Voyager Digital bankruptcy ruling to strengthen its fair notice defense in its case with the United States regulator, the Securities and Exchange Commission (SEC). The crypto payment platform filed another letter of notice of supplemental authority over the classification of XRP as securities. 

Ripple Labs filed the notice with Judge Analisa Torres of the US District Court for the Southern District of New York.

For the Voyager Digital bankruptcy case, the SEC’s objection to Binance.US’s plan to acquire assets of the bankrupt crypto lender valued at about $1 billion was not accepted by the court. Instead, the crypto lender’s bankruptcy proposal was approved by Judge Michael Wiles of the United States Bankruptcy Court for the Southern District of New York. 

James K. Filan, a defense lawyer, and former Federal prosecutor has closely followed the XRP vs SEC case since it began. He took to Twitter to share a copy of the notice of supplemental authority in the latest filing. Markedly, the Ripple Labs filing has received numerous reactions from the XRP community. Most XRP community members have bashed the U.S. regulator. 

Judge Wiles also mentioned that SEC is trying to instigate uncertainties in the crypto market and at another time, he blamed the SEC for not speaking up at the right time, which would have been earlier in the case. A response by Ripple Labs Chief Technology Officer (CTO) David Schwartz to attorney James K. Filan’s tweet showed that he shares the same sentiment.

Judge Torres Rejects SEC’s Objection

The SEC had tried to contend Ripple’s fair notice defense which would allow the latter to argue that it was not informed of any wrongdoing before the lawsuit was levied against the company. 

According to Ripple, no clear guidance or warning was given as to whether XRP is a security or not, therefore, it should not be held liable for any offense related to the security status of its token. 

Judge Torres rejected the motion presented by SEC, indicating a win in favor of Ripple Labs and strengthening its argument in the lawsuit. Also, the judge recently accepted and denied some motions to exclude expert testimony from consideration in the case summary judgment. Patrick Doody was one of the experts whose testimony was rejected.

May 29, 2024

Dollowing guilty plea to U.S. charges in November, Changpeng Zhao has..

May 29, 2024

Hashrate Futures, trading under the ticker HUP and offered by Luxor..

ads-image ads-image