Over 6,000 XRP holders have joined a motion to intervene filed by Deaton Law Firm on Sunday 14th of March of 2021 in an attempt to intervene as a third-party defendant.
John E. Deaton, the lawyer representing XRP holders in the motion, says he also has notified the Securities and Exchange Commission (SEC) of his intention to file a class-action lawsuit against the regulatory body due to damages caused by its,
“intentional misconduct and/or gross negligence and gross abuse of discretion related to its allegations and claims regarding the Digital Asset XRP.”
Ripple is Going Hard on the SEC
The motion cites Ripple’s claim that the lawsuit’s “overreaching allegations have caused harm not only to Ripple, but also to hundreds of nonparties that integrate XRP into products or offerings or otherwise support XRP and to millions of XRP holders,” which according to Mr. Deaton would allow the group in represents to intervene in the lawsuit.
In addition to this, the SEC filed a motion to dismiss an XRP holder’s petition for a Writ of Mandamus claiming that the court currently addressing the lawsuit “serves as the exclusive forum to hear all claims related to its Complaint against Ripple and the Digital Asset XRP”.
This motion is just the latest event in the ongoing litigation of the SEC against Ripple Labs and 2 of its executives, which according to Deaton caused over $15 Billion in losses to XRP holders in the days following the news.
How it Has Unfolded So Far…
Back on December 22 of 2020, a lawsuit was filed by the then SEC chairman Jack Clayton against Ripple Labs, its Co-Founder Chris Larsen, and CEO Bradly Garlinghouse for raising over $1.3 billion through the cryptocurrency XRP, which according to the regulatory body was an unregistered digital securities offering.
While there is not a regulatory framework in place in the United States that allows blockchain and cryptocurrency companies to navigate the legal aspects of crypto and even the SEC has refused…