Crypto lawyer claims 99.9% win for Ripple over $20m payout

Prominent cryptocurrency attorney John Deaton offers insights into the United States Securities and Exchange Commission (SEC) lawsuit against Ripple. He argued that a settlement of $20 million or less would be a major legal victory for the company.

In a recent post on X (formerly Twitter), Deaton strongly rejected the idea that the outcome of the lawsuit was a 50/50 outcome for the SEC, stating that it would be presented in favor of Ripple 90/10. Dayton's comments highlight another legal setback for the SEC stemming from a post by Ripple's chief legal officer, Stuart Alderotti.

Dayton's view echoes the sentiment in the cryptocurrency community, which generally views the proposed $20 million settlement as a positive settlement for Ripple. This review examines the potential consequences of the XRP lawsuit and the broader regulatory environment for digital currencies.

Those who argued that the SEC had a 50-50 win in the @Ripple case are wrong. It was more like 90-10 in favor of Ripple. If Ripple ends up paying $20M or less, it's a 99.9% legit win. https://t.co/Xe6SYBiTCJ

— John E Deaton (@JohnEDeaton1) November 4, 2023

Stuart Alderoty's post adds to the story this week, noting that the SEC suffered another setback. According to Alderotti in SEC vs. In the Govil case, the U.S. Court of Appeals for the Second Circuit ruled that the SEC could not seek a substantial liquidation award without first showing actual financial harm to “investors.” If there is no harm, there is no penalty.

In the year In December 2020, the SEC initiated legal action against Ripple Labs, accusing the company of making an unregistered securities offering by selling XRP.

Ultimately, a precedent was established when Judge Analisa Torres ruled that the property was not a foreclosure when it was sold on the secondary market. Additionally, the case has taken a turn for the worse as the charges against Ripple's executives have dropped.

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Meanwhile, Torres recently approved an order regarding the SEC and Ripple's joint request to provide a shorter timeline to address institutional sales of XRP. This relates to part of the XRP lawsuit where the company was found to have violated securities laws. Torres directed the parties to provide a joint summary schedule no later than Nov. 9.

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