In the ongoing legal battle between Ripple Labs and the US Securities and Exchange Commission (SEC), a significant development occurred with the filing of a document by a mysterious non-party known as the “Investment Banker Declarant.” This individual, represented by counsel Andrew A. Kunsak of Sidley Austin LLP, officially re-entered the case overseen by Judge Analisa Torres on August 15, 2023.
The presence of this anonymous banker in the case dates back to an earlier declaration submitted in support of the SEC’s motion for summary judgment. At that time, Ripple Labs had objected to the anonymous filing, arguing that the declarant had willingly chosen to enter the case and should therefore disclose their identity. In response, the unnamed banker argued that revealing their identity could subject them to unwarranted harassment, a stance supported by the SEC.
The continued anonymity of the Investment Banker Declarant has sparked intense speculation within the XRP community regarding their true identity. Bitcoinist previously reported on a prominent hypothesis put forth by community member Mr. Huber and attorney John Deaton, who represents XRP holders in the litigation. They suggested that the declarant could be someone like Mike Novogratz, the founder of Galaxy Digital or Tetragon.
The rationale behind the speculation surrounding Novogratz is rooted in Galaxy Digital’s ownership stake in Ripple and its decision to divest itself of XRP shortly after the SEC initiated legal action against Ripple. Novogratz has made public statements in the past about his belief that the SEC would not classify Ethereum as a security, and his previous interactions with Joe Lubin, a key figure in the cryptocurrency industry, further add to the speculation.
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On the other hand, Tetragon, an investment management group, has also been considered a potential candidate. The group previously sued Ripple following the SEC lawsuit but ultimately experienced a defeat in court.
Recently, the SEC filed a motion for an interlocutory appeal against Judge Torres’s verdict, which stated that programmatic sales of XRP are not securities according to the Howey Test. In response, Ripple’s Chief Legal Officer, Stuart Alderoty, clarified that the agency is only seeking permission to file an appeal and not disputing the ruling that XRP is not a security.
As of now, the price of XRP is trading at $0.6012 after finding support at the 100-day Exponential Moving Average (EMA) on the previous day.
In conclusion, the re-entry of the Investment Banker Declarant, whose true identity remains unknown, has added further intrigue to the Ripple Labs vs. SEC legal battle. Speculation within the XRP community has centered around figures like Mike Novogratz of Galaxy Digital and Tetragon. The ongoing appeals process and the ultimate outcome of this case will have significant implications for Ripple and the broader cryptocurrency industry.
