The Court of the Southern District of New York has allowed XRP token holders to petition to participate in the Ripple lawsuit. This is stated in a letter from Judge Analisa Torres dated March 29, 2021.
Investor representatives must submit the required documents by April 19. By May 3, the plaintiff, represented by the US Securities and Exchange Commission (SEC), and the defendants can file their objections.
Earlier, the founder of the law firm Deaton Law Firm, John Deaton, on behalf of XRP holders, demanded that the regulator change the lawsuit against Ripple and stop calling the coin a security. According to him, the commission “deliberately and deliberately” caused “multi-billion dollar” losses to investors.
In March 2021, the SEC filed a petition with the court to reject this requirement.
In the same month, Deaton announced the intention of the token holders to participate in the lawsuit as a third party to protect their interests.
In response, the commission noted that the investors did not explain “what claims and to whom they will present in this case.” SEC lawyers also warned of possible delays and confusion as a result of the participation of “all interested members of the public.”
In December 2020, the SEC accused Ripple , its CEO Brad Garlinghouse and co-founder Chris Larsen, of an unregistered sale of $ 1.3 billion in XRP.
Later, the department adjusted the claim , focusing on the actions of Larsen and Garlinghouse. According to the regulator, they manipulated the price of the asset and personally received $ 600 million from sales.
Recall that in March 2021, the SEC asked six banks for data on the personal financial transactions of Ripple executives over the past eight years.