New Development In Ripple Case: XRP Side Seeks Rejection Of The Case
According to the latest information, Garlinghouse and Larsen's lawyers are seeking court denial of allegations of violating Section 5.
In December 2020, the United States Securities and Exchange Commission (SEC) sued Ripple and two top executive CEO Brad Garlinghouse and founder Chris Larsen for allegedly selling off-the-record securities. After the lawsuit is filed, new developments are constantly happening.
🚨Managers Reject Lawsuit
According to the latest information, Ripple CEO Brad Garlinghouse and former CEO Chris Larsen filed two different petitions in December to dismiss the lawsuit filed against them by the US Securities and Exchange Commission.
In its complaint, the company allegedly aided and abetted the unregistered sales of XRP cryptocurrency, the agency made an unorthodox move to name two high-profile executives as defendants.
On the other hand, Garlinghouse and Larsen's lawyers claim that XRP -related transactions are predominantly foreign-sourced. Despite admitting that some XRP buyers are located in the US, lawyers state that the SEC was unable to even bring a transaction in the US to court.
According to the defendants, allegations of violating Section 5 must be dismissed by the court, as the plaintiff's complaint could not reasonably argue any situation to prove that Ripple administrators knowingly violated the law by selling the token.
Larsen's lawyers also state that the SEC is prohibited from seeking monetary damages under the statute of limitations, a law that limits the time in which legal proceedings can be initiated.
According to an order issued by Judge Analisa Torres from the US District Court for the Southern District of New York, the SEC will have to file objection documents regarding the refusal of Larsen and Garlinghouse by May 14 .
The defendants will have the chance to reply to these documents until June 4.