The legal battle between Ripple Labs Inc and the United States Securities and Exchange Commission (SEC) has raised concerns among XRP investors, according to crypto attorney John E. Deaton. Deaton believes that this lawsuit could lead to years of uncertainty for XRP investors. He has provided insights into the potential outcomes and timeline of the legal battle between Ripple and the SEC.
Deaton explains that if Ripple loses to the SEC at the Appeals Court, it would take several years before any money is collected. However, if the case reaches the Supreme Court, which Deaton expects if Congress hasn’t acted by then, he believes that Ripple would come out as the winner.
On the other hand, Deaton suggests that if the SEC were to win the case, Ripple would appeal, and the current situation would continue for the next 2-5 years. This long legal process would result in no money being available to XRP investors in the recent Class Action against the firm for years, or potentially never.
Assuming Ripple loses all the appeals after five years, Deaton believes that the SEC would then collect the recovery fund, which is estimated to be approximately $1.3 billion. In this scenario, the recovery fund would go to the SEC instead of the civil plaintiffs. Deaton hints that the SEC would likely offer a payback fund for XRP holders to sell their XRP, similar to what happened with Veritaseum.
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Deaton points out that if the SEC fund were to provide recovery, XRP holders would receive more money since the civil case lawyers would receive 25-35 percent of the recovery for attorney fees before deducting the costs of the case from the fund. From this perspective, Deaton suggests that it would be preferable for the SEC to lose because their victory could significantly reduce the damages in the civil case.
In addition to his analysis of the legal battle, Deaton highlights the benefits of being on the 75,000 XRP holder’s list that he is managing. This list consists of early XRP holders who have been named potential “intervenors” in the case. Joining this list does not waive any rights or claims but instead increases the likelihood of being contacted if there is any monetary recovery for XRP holders from either the civil case or the SEC case.
Deaton advises individuals to disregard claims that joining the 75K list and asserting that XRP is not a security would be detrimental if there were a monetary recovery for XRP holders in the future. He suggests that being part of the list and holding the belief that XRP is not a security can potentially be advantageous in seeking reimbursement or relief.
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In conclusion, the legal battle between Ripple and the SEC has raised concerns among XRP investors. John E. Deaton, a pro-XRP lawyer, believes that this lawsuit could result in years of uncertainty for XRP investors. He provides insights into the potential outcomes and timeline of the legal battle, suggesting that it would be better for Ripple to win the case over the SEC. Additionally, Deaton highlights the benefits of joining the 75K XRP holder’s list and asserts that being part of the list and holding the belief that XRP is not a security can potentially be advantageous in seeking reimbursement or relief.
