According to the latest news, XRP holders blame Securities and Exchange Commission for their multi-billions losses. They are requesting to join the lawsuit against Ripple labs as third-party defendants.
XRP holders in a letter said that they intend to file a class-action lawsuit against SEC to seek damages for the intentional misconduct by the Securities and Exchange Commission and negligence related to its allegations regarding XRP. In a memorandum to Torres’ court in the Southern District of NY, Deaton criticized the Securities and Exchange Commission to cause Ripple’s price to collapse, which resulted in multi-billions in losses.
The agency’s goal is to protect the investors and promote the fair game for the companies to help the investors make informed decisions. According to the XRP holders’ memorandum, the Securities and Exchange Commission intentionally caused multi-billion losses to the innocent holders instead of protecting the investors and sharing information to make a precise decision.
Notably, the Securities and Exchange Commission filed a lawsuit against RippleRipple in December 2020, stating that XRP’s sale was unregistered security offering to worth over 1.38 billion US Dollars. The agency also named Ripple’s CEO and executive chairman as co-defendants for abetting the violations and making $600 million for their profit from this unregistered sale. After this lawsuit in December, the price of XRP fell by 60% within a month. The market price of XRP, at the time of writing, is $0.46 after an increase of 5.36% in 24 hours.
At the moment, XRP holders wanted to know that who exactly the SEC is trying to protect by going against XRP because SEC is seeking $1.3 billion from the named defendants in alleged gains, but it caused a loss of more than $15 billion for XRP holders.
Ripple’s XRP is now the seventh-largest crypto in the world in terms of market capitalization. The industry leaders and investors are closely monitoring the lawsuit against Ripple labs for any legal precedent it could set for the other cryptos.