The Executive Chairman of Ripple recently filed a motion to dismiss the lawsuit against the company by SEC. In order to proceed, Chris Larsen and Brad Garlinghouse, the company’s CEO joint forces to fight against the case.
A letter that Larsen’s attorneys filed a few days ago, stated four arguments with reasons for their motion for dismissal. The attorneys disclosed that the SEC doesn’t have the evidence to prove Larsen violated section 5 of the 1993 Securities Act.
The letter also argued that when Larsen was Ripple’s CEO, two strong regulatory bodies. The Treasury Department’s Finance Crimes Enforcement Network and the Justice Department classified Ripple’s XRP as a currency. From this argument, the attorneys argue that Larsen did not take any action to facilitate the sale of XRP.
Another argument which the attorneys put forward was that the statute of limitations on the case against Larsen has elapsed. The sales occurred in 2013, and so, if Larsen participated as the SEC claims in the sales, the status of limitation expired 3 years ago in 2018.
Brad Garlinghouse Supports the Dismissal of SEC Lawsuit
The present CEO of Ripple, Brad Garlinghouse, has also extended his hands to fight against the case. In another letter which his attorney filed last Wednesday, the present CEO supporting what Larsen’s attorneys stated about the XRP classification as a currency.
Brad’s attorney Mathew C Solomon took it a step farther by writing to the Southern District Court Judge, Analisa Torres, concerning the issue. He pointed out that it was the FinCEN that called XRP a virtual currency. Also, Ripple CEO’s legal representatives stated in the letter that SEC shouldn’t file a lawsuit against Larsen for violating laws because he was only carrying out his role as the company head.
In another news, the Securities and Exchange Commission amended its complaints against Ripple executives. SEC is now accusing them of price manipulation. However, both parties to the case are not ready to settle.