US SEC Leverages Ripple XRP Case in Binance Lawsuit
The SEC is filing a lawsuit against Ripple as additional evidence in the lawsuit against Binance. The Binance case is nearing the end of the discovery and witness examination phase as the parties have resolved most of the disclosure disputes
The U.S. Securities and Exchange Commission (SEC) draws the court's attention to a recent ruling in the Ripple class action, utilizing the Ripple XRP case in the Binance lawsuit. It follows as a legal opinion by a California district court judge completely diverges from a decision on XRP as not security by an SDNY judge.
SEC Files Ripple Lawsuit As Supplementary Authority in Binance Suit
In the latest filing by the U.S. SEC in the District Court of Columbia, the securities regulator submitted the Ripple class action lawsuit as a supplementary authority. The SEC argues that the argument and the judge's opinion in the Ripple lawsuit are relevant to the court for ruling in the lawsuit against Binance, Binance.US, and former CEO Changpeng Zhao.
The Binance lawsuit is near the end of the discovery and deposition phase, as the parties have resolved most discovery disputes. The lawsuit is currently seeking the court's ruling on several motions, including a joint motion to dismiss the lawsuit.
Judge Hamilton in In re Ripple Labs, Inc. Litigation ruled in favor of Ripple, dismissing most arguments by the plaintiff against Ripple over securities violations. However, a trial on misleading statements for XRP sales by Ripple CEO Brad Garlinghouse will remain for trial.
Ripple CEO Garlinhouse in a recent post regarding misleading statements cited in the case, stated "I stand by what I said and am looking forward to shedding light on that during the trial." He added that the sole plaintiff who owns a few hundred XRP didn't even buy it directly from Ripple and "can't say if he even heard the statement before he traded."
