Garlinghouse vs. SEC: Ripple Hires New Attorneys to Fight Lawsuit

In a strategic move, Ripple has recently enlisted the expertise of two attorneys to represent its CEO in a legal tussle against the U.S. District Court for the Southern District of New York. The move is a proactive step aimed at countering the U.S. Securities and Exchange Commission’s (SEC) efforts to secure approval for an interlocutory appeal in the ongoing litigation.

New Attorneys to Steer Ripple’s Future

Attorney Caleb J. Robertson from Cleary Gottlieb Steen & Hamilton LLP has stepped up to officially champion the cause of Brad Garlinghouse, Ripple’s CEO, in the lawsuit pitting the company against the SEC. A formal plea was submitted to the court, urging the provision of all pertinent legal documents and correspondence linked to the lawsuit. To reinforce their legal team, the firm has also welcomed Michael A. Schulman, who has put forth a motion to be granted permission to represent Garlinghouse in the SEC case as “Pro Hac Vice.”

Ripple is leaving no room for chance, placing its trust in seasoned cryptocurrency advocate, Caleb J. Robertson. His prior experience includes navigating government investigations within the realm of cryptocurrency platforms. Moreover, Robertson’s legal expertise encompasses representing financial institutions, securities trading firms, investment managers, and publicly traded entities concerning regulatory affairs.

Read More: Did the Ripple Vs SEC Lawsuit Set XRP Back by 3 Years?! Here’s the Truth

This breadth of experience positions him as the apt candidate to present compelling arguments regarding the SEC’s evolving perspective on “Securities,” given that Ripple has a strong position in asserting that XRP is no longer considered a security.

Garlinghouse Steps In

Ripple’s CEO, Brad Garlinghouse, has taken a hands-on approach in the XRP lawsuit, as it connects to allegations leveled by the U.S. SEC. He has vocally criticized the SEC in the past for their shifting stance and misleading actions in the case, further complicating matters for the broader realm of crypto assets. Notably, on December 22, 2020, Ripple also lodged another complaint.

The accusation centers on Garlinghouse and Christian Larsen, a Ripple co-founder, allegedly manipulating customer funds by vending XRP tokens, which the SEC categorizes as “unregistered securities.” The query surfaces: How can the SEC challenge or implicate individuals in the sale of “Unsecured Securities” if the nature of the securities remains unknown?

What is Ripple Supposedly Doing Wrong?

The core of the SEC’s argument revolves around Ripple’s purported accumulation of funds through the sale of XRP tokens without proper registration, spanning back to 2013, inclusive of transactions with both global and U.S. investors.