Following the conclusion of Ripple’s legal battle with the U.S. Securities and Exchange Commission (SEC), new allegations of misconduct have surfaced. Renowned attorney John Deaton recently accused the SEC lawyers of engaging in intentional misconduct during the lawsuit, claiming they misled the court.
Allegations of SEC Misconduct
Deaton’s recent remarks have sparked controversy within the XRP community, which has been critical of the SEC’s regulatory approach to cryptocurrency. He stated in a recent interview that the SEC’s legal team had overstepped ethical boundaries and called for the dismissal of those responsible. According to Deaton, the SEC misrepresented crucial details in the Ripple lawsuit, going beyond standard legal strategy and exhibiting unethical behavior.
While the SEC has issued an apology for mischaracterizing XRP during the lawsuit, Deaton believes that this is insufficient and that there must be accountability. Ripple’s supporters are closely monitoring for any potential appeals from the SEC in response to Deaton’s allegations.
Related: Ripple Case Exposes SEC Confusion as XRP Awaits Key Ruling
Deaton emphasized the need for consequences, stating, “People should be fired. They should lose their jobs if they were involved in the decision-making process.” He revealed that Ripple had spent over $100 million on defense and that he, along with XRP community members, had urged the SEC to retract the “XRP is a security” statement to settle the case. However, Deaton claimed that the SEC refused and even targeted him.
Ripple’s Settlement and Potential Appeal
The legal dispute between Ripple and the SEC concluded with a $125 million settlement, significantly lower than the initial $2 billion demand. Despite this resolution, uncertainty looms as the SEC has not indicated whether it will appeal the rulings, leaving XRP holders in a state of uncertainty.
Former SEC attorneys Marc Fagel and James Farrell anticipate that the SEC will challenge the judgment, while attorney Fred Rispoli suggested that the SEC’s decision may be delayed until the last minute. On the contrary, Ripple’s Chief Legal Officer Stuart Alderoty expressed confidence that Ripple will not appeal the judgment, citing a stay order on the $125 million penalty during ongoing proceedings.
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