John Deaton, the attorney for XRP holders, has expressed serious concerns about a class action lawsuit against Ripple in a recent development regarding the ongoing legal battle between Ripple Labs and the U.S. Securities and Exchange Commission (SEC).
Deaton, who has emerged as the top voice for over 75,000 XRP holders globally, has shown skepticism about the potential consequences of the lawsuit. He claimed that if the regulatory body won, the SEC “would be the one to collect the funds and set up a fund to pay XRP holders, thus gutting this class action.”
This claim raises concerns about who would ultimately receive any settlement or compensation. The lawyer’s worries are based on the fact that the SEC’s main objectives are to uphold securities laws and protect investors.
Analysis by Godfrey Benjamin, an analyst at CoinGape, says that at first appearance, this could turn out to be good news for XRP owners, but according to Deaton, the agency’s involvement in distributing any funds obtained might drastically cut down on the amount made accessible to specific claimants.
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He says the SEC’s involvement might make the ongoing class action litigation less effective. Investigation into John Deaton’s antecedents reveals that he is a reliable source for details and explanations on the legal procedures because of his position as a well-known attorney for XRP holders.
He has been contacted by XRP investors from all over the world who have expressed their worries and asked for advice during the legal process. His evaluation of the class action lawsuit’s prospective effects offers an insightful analysis of the case’s intricacies.
SEC’s Position Explained, As Investors, Critiques Monitors The Development
Recall, that the SEC had filed a complaint against Ripple in December 2020, saying that the business offered unregistered securities by selling XRP. Since then, Ripple has refuted the accusations and has been arguing its legal case ever since. The XRP community believe that the result of this court dispute will have significant ramifications for both Ripple and the larger cryptocurrency market.
This legal action tries to obtain compensation for the losses the company claims it sustained due to the SEC’s activities against it. Deaton’s doubts, however, highlight the possible difficulties that the claimants would experience if the SEC prevails.
Both XRP holders and critiques are intently monitoring any changes in the judicial procedures that might impact the outcome of the case. The evaluation by John Deaton serves as a warning that obtaining justice and compensation might not be simple.
Benjamin also recommended that it emphasizes the necessity for XRP holders to stay informed and think through all options while waiting for the outcome of the court case. However, John Deaton’s critiques have commented on the new class action llawsuit
Deaton’s critiques believe that owners of XRP would encounter a drawback if the SEC wins its case. Meanwhile, the XRP market today is adamant in response to the latest legal suit. Hence, the activity seemed normal.
As of the time of writing, the price of XRP is $0.474182 (according to price data from CoinMarketCap), trading $985,089,139 in total trading volume in the last 24 hours. Data from CoinMarketCap has ranked it at #6, with a market capitalization of $24,778,030,784, that was, after it slowed down by 2.19% in the last 24 hours.