The post XRP Lawsuit Update: SEC Claims Trigger Panic Among Institutional Investors appeared first on Coinpedia Fintech News
In his most recent observations on X, Bill Morgan highlighted that Ripple might face legal challenges due to the existing legal battle with the U.S. Securities and Exchange Commission.
Although this commentator doesn’t provide comprehensive information and tends to exaggerate, his point about the company’s institutional sales practices is worth discussing in the example of Ripple’s project and its impact on prices and other factors.
Bill Morgan’s overview
2 days ago, the SEC filed the remedies-related chart; today was the date to present the public disclosure officially. Thus, from the history interview, we understand that the SEC side has asked for, in addition to everything else, a 7 billion-dollar amount in the aftermath of the damages and fine charged.
After this statement, Bill Morgan outlined on Twitter his concerns about the SEC’s allegations about Ripple’s institutional sales:
Morgan also highlights the SEC’s claim that Ripple effectively harmed other institutional investors by providing heavy discounts. The SEC claims that such harm produced $480 million in losses to institutions.
Morgan claims that such a statement implies that all other investors who did not get the discounts are now plausible plaintiffs in the class-action lawsuits. In this regard, many thematic lawsuits can be filed against Ripple by institutions claiming that the non-disclosure of discounts during the purchase caused them harm. The author states that a solid argument in favor of timing would be required for the causation to file the thematic lawsuits.
Furthermore, Morgan notes that the SEC’s classification оf Ripple’s sales tо institutions as investment contracts implies that the disclosure оf discounts should have been made іf the sales had been registered. This aspect adds another layer of complexity to the legal proceedings and underscores the significance of transparency in cryptocurrency transactions.