- The ongoing legal battle with Ripple Labs-SEC continues with allegations of SEC stalling.
- Cryptocurrency attorney John E. Deaton alleges the SEC’s leadership is corrupt and lacks transparency.
- The SEC holds important documents needed for Ripple Labs’ defense.
ongoing legal battle between the US Securities and Exchange Commission (SEC) and Ripple Labs Taking a new turn, prominent crypto lawyer John E. Deaton accused the regulator of stalling and hiding the truth.
On May 11, 2023, the non-profit Empower Oversight Foundation, foot new complaint against SEC in a US district court, in an effort to force the regulator to comply with a Freedom of Information Act (FOIA) request I made earlier.
The Freedom of Information Act request, introduced in December 2022, seeks information about conflicts of interest and selective enforcement by former high-level officials related to cryptocurrency.
The order sought all crypto-related communications between senior SEC officials, their former employers, and related entities.
Ex-SEC Official Exposed in Ripple Case Paid $9 Million
The latest complaint by Empower Oversight comes after former senior SEC official William Hinman was discovered to have received $9 million in damages from his former employer, Simpson Thacher, while helping direct SEC enforcement decisions on cryptocurrency.
Representing a group of XRP holders in the case against the SEC, Deaton expressed frustration with the agency’s leadership. on Twitterstating that it is corrupt and lacks transparency in its dealings with Ripple Labs.
Deaton alleged that the SEC withheld important documents and emails that are crucial to Ripple Labs’ defense in the long legal battle. Interestingly, the attorney made the remarks in the wake of a recent move by US whistleblower and anti-corruption watchdog Empower Oversight.
on the flip side
- The SEC has not responded to John E. Deaton’s accusations of stalling and concealing the truth, and it remains to be seen if they will address his concerns publicly.
- The outcome of the Empower Oversight complaint remains to be seen, as it seeks to compel the SEC to comply with the organization’s Freedom of Information Act request.
Why should you bother
Recent allegations by Empower Oversight regarding the SEC’s handling of information regarding conflicts of interest and selective enforcement regarding cryptocurrency, as well as John E. Deaton’s accusations of filibustering highlight the lack of transparency within the regulator.
For more on the controversy surrounding the security status of XRP, check out this article:
Garlinghouse disagrees with Venture Capitalist on the security situation for XRP
For information on Ripple’s expansion in the Middle East via On-Demand Liquidity and Swell Global platforms, read this article:
Ripple expands into the Middle East with Liquidity on Demand and Swell Global