SNEAK PEEK
- Lawyer Bill Morgan sheds new light on Ripple XRP legal battle.
- The outcome could have broader implications for the cryptocurrency industry.
- Potential victory for Ripple if the judge rules in its favour.
In the ongoing legal battle between Ripple and the U.S. Securities and Exchange Commission (SEC), there has been much debate about the potential consequences for the company if it is found liable for securities violations. A tweet from a lawyer and digital asset enthusiast Bill Morgan has shed new light on the matter.
According to Morgan, if the judge in the case only finds that Ripple’s XRP sales up to 2015 constituted investment contracts, the SEC may not be able to obtain disgorgement from the company.
The thread and comments relate to a type of remedy (disgorgement) if Ripple loses on liability. The gist of exchange with the former SEC attorney is that the SEC may obtain no disgorgement if the Judge only finds Ripple XRP sales up to 2015 were investment contracts /1 https://t.co/PIAhdcbLpr
— bill morgan (@Belisarius2020) April 24, 2023
Disgorgement is a legal remedy that requires wrongdoers to give up their ill-gotten gains. In this case, it would mean Ripple would have to give up the proceeds from its XRP sales.
Morgan’s tweet has sparked discussion among legal experts and Ripple supporters alike. Some argue that the judge’s ruling will significantly impact the damages Ripple may have to pay if it is found liable. Others point out that the ruling could have broader implications for the cryptocurrency industry as a whole.
In addition, Bill Morgan also notes that there may be another potential outcome in the case. According to him, if the judge rules that current XRP sales are made to ODL (On-Demand Liquidity) customers who are not investors and do not expect profits from XRP sales, the SEC may be unable to obtain a permanent injunction on future Ripple XRP sales. A permanent injunction is a court order that requires a party to stop engaging in a particular activity.
This outcome would be another significant victory for Ripple, allowing the company to continue selling XRP without fear of legal action from the SEC. However, as with the potential outcome regarding disgorgement, many factors could ultimately determine the final outcome of the case.
