- Ongoing Ripple Labs-SEC legal battle continues with SEC stonewalling allegations.
- Crypto lawyer John E Deaton alleges SEC leadership is corrupt and lacks transparency.
- SEC withholds crucial documents needed for Ripple Labs’ defense.
The ongoing legal battle between the United States Securities and Exchange Commission (SEC) and Ripple Labs has taken a new turn, with prominent crypto lawyer John E Deaton accusing the regulatory body of stonewalling and concealing the truth.
On May 11, 2023, Empower Oversight, a non-profit organization, filed a fresh complaint against the SEC in a District Court in the United States, seeking to force the regulator to comply with a Freedom of Information Act (FOIA) request that it previously filed.
The FOIA request, filed in December 2022, sought information on conflicts of interest and selective enforcement by former high-level officials concerning cryptocurrencies.
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The request asked for all communications related to cryptocurrencies between senior SEC officials and their former employers and related entities.
$9M Payment to Former SEC Official Exposed in Ripple Case
The recent complaint by Empower Oversight comes after it was discovered that former senior SEC official William Hinman received $9 million in compensation from his former employer, Simpson Thacher, while helping to guide the SEC’s enforcement decisions on cryptocurrencies.
Representing a group of XRP holders in the case against the SEC, Deaton voiced his frustration with the agency’s leadership on Twitter, stating that it is corrupt and lacks transparency in its dealings with Ripple Labs.
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Deaton alleged that the SEC has withheld crucial documents and emails that are crucial to Ripple Labs’ defense in the lengthy legal battle. Interestingly, the lawyer made these statements following the recent move by the U.S. whistleblower and anti-corruption watchdog, Empower Oversight.
On the Flipside
- The SEC has not responded to John E Deaton’s accusations of stonewalling and hiding the truth, and it remains to be seen whether they will address his concerns publicly.
- The outcome of the Empower Oversight’s complaint remains to be seen, as it seeks to force the SEC to comply with a FOIA request filed by the organization.
Why You Should Care
The recent claims made by Empower Oversight regarding the SEC’s handling of information related to conflicts of interest and selective enforcement concerning cryptocurrencies, as well as John E Deaton’s accusations of stonewalling, shed light on the lack of transparency within the regulatory body.
To learn more about the ongoing debate surrounding XRP’s security status, check out this article:
Garlinghouse Clashes with Venture Capitalist on XRP’s Security Status
For information on Ripple’s expansion in the Middle East through its On-Demand Liquidity and Swell Global platforms, read this article:
Ripple Expands in Middle East with On-Demand Liquidity and Swell Global
