News View Non-AMP

XRP Lawsuit Twist? SEC’s $7 Billion Claim Fuels Investor Concerns

Published by
Elena R

Bill Morgan, a respected figure in the crypto world, has sounded the alarm about Ripple’s legal troubles. The company is currently locked in a battle with the U.S. Securities and Exchange Commission (SEC), facing potentially significant challenges ahead.

Could this legal fight trigger a wave of investor lawsuits? And what impact might it have on the XRP price? Read on to find out the latest developments in this high-profile case.

SEC’s Move: A $7 Billion Demand?

Just two days ago, the SEC revealed a chart proposing remedies, hinting at the severity of the situation. Today, they’re expected to formally disclose their demands, rumored to include a hefty $7 billion in damages and fines.

Bill Morgan took to Twitter to share his concerns about the SEC’s accusations against Ripple’s sales practices. The SEC alleges that Ripple’s favoritism toward certain institutional investors led to massive losses totaling $480 million. Morgan warns that investors left out of these deals could band together to sue Ripple, but proving the harm caused by the lack of disclosure will be key.

Read More: Ripple vs. SEC: Legal Expert Sheds Light on Potential Outcomes

Understanding the SEC’s Strategy

Morgan also points out that the SEC classifying Ripple’s sales as investment contracts carries significant implications. It suggests that Ripple should have disclosed information as if the sales were registered, adding complexity to the legal battle and emphasizing the importance of transparency in cryptocurrency transactions.

As Ripple faces these legal challenges, the crypto world watches closely. The outcome of this legal showdown could have far-reaching effects on Ripple and the broader crypto market.

Elena R

Elena is an expert in technical analysis and risk management in cryptocurrency market. She has 10+year experience in writing - accordingly she is avid journalists with a passion towards researching new insights coming into crypto erena.

Recent Posts

XRP News: New Twist Emerges In Ripple SEC Case With Unusual Filing

Ripple’s XRP is back in the spotlight after a surprising new filing in the long-running…

April 4, 2025

Bitcoin & Ethereum ETFs See Major Outflows—BlackRock Stands Firm

April 3 marked another tough day for crypto ETFs, with Ethereum ETFs losing $3.59 million…

April 4, 2025

Bitcoin ETFs Face $100M Outflows as Markets Plunge Following Trump’s Tariff Shock

On Thursday, U.S. spot Bitcoin ETFs faced $99.86 million in net outflows as the stock…

April 4, 2025

Ethereum (ETH) Price Prediction for April 2025

Ethereum (ETH/USD) price held a crucial support range between $1,755 and $1,800 as the United…

April 4, 2025

Why Crypto Is Down Today: Traders React to Tariffs, Eye Fed’s Next Move

The crypto market has hit a rough patch, slipping to $2.65 trillion after a 1.02%…

April 4, 2025

Crypto Awaits Fed Rate Cut Decision Amid Recession Fears

Crypto markets went on a rollercoaster ride this week as investors reacted to President Trump’s…

April 4, 2025