A US court ruling in a separate case could strengthen Ripple’s defence in its lawsuit against the SEC. The SEC has been declined by the US Circuit Court of Appeals for the Second Circuit to present another motion to reconsider its rejection of the SEC’s action in SEC v. Govil case.
The decision lays down that in such circumstances, the seller may act as a defendant without their funds being disgorged, as long as the buyer never incurred any monetary losses.
Stuart Alderoty, Ripple’s Chief Legal Officer, made it clear that the SEC cannot make such a large disgorgement demand without showing that investors had been harmed.
An attorney from Australia also has his say on this issue, reminding that investors suffered financial losses. Still, he clarifies that the Ripple advantage in the case of Govil is only possible if they demonstrate that there were no detrimental outcomes to any institutional investors.
The SEC is looking to penalize Ripple by as much as $2 billion, even if it has no charges of fraud allegation.
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