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- Legal expert James “MetaLawMan” Murphy offers insights into the SEC v. Ripple case, focusing on the SEC’s demand for disgorgement.
- He also highlights the Supreme Court’s stance that disgorged funds should benefit victims, primarily institutional buyers of XRP.
Renowned legal expert James “MetaLawMan” Murphy offers fresh insights into the SEC v. Ripple case, particularly focusing on the SEC’s push for disgorgement.
Disgorgement, within the realm of securities regulations, involves relinquishing all unlawfully acquired profits derived from illicit activities. Attorney Murphy sheds further light on a crucial aspect of the SEC’s pursuit of disgorgement in the Ripple lawsuit, highlighting what he deems as the “crazy” element of the regulator’s demand.
Murphy highlighted that the U.S. Supreme Court has previously clarified that all disgorged funds should be directed to the victims involved in the case. “One thing the U.S. Supreme Court has been really clear about is that disgorgement is supposed to go to the victims,” he said. Attorney’s Murphy’s comments came during the recent interview on the Good Morning Crypto podcast.
Want to know the craziest part about the SEC's demand for disgorgement in the @Ripple case?
This 👇 pic.twitter.com/Z5A0KQDf6o
— MetaLawMan (@MetaLawMan) May 14, 2024
The recent development comes as Ripple seeks to seal the Remedies Brief, in a recent court filing with the US SEC, reported Crypto News Flash.
SEC’s Demands Will Only Make XRP Institutional Buyers Richer
Attorney Murphy underscored that any disgorged funds retrieved by the SEC would go to the purported victims of the Ripple case. Notably, these “victims” primarily consist of institutional purchasers of XRP.
To illustrate, Attorney Murphy clarified that in the event of an SEC victory, the regulator would distribute the disgorged funds solely to institutional purchasers of XRP, without retaining any portion for itself or the U.S. Treasury. Murphy further elaborated that this course of action would only serve to enrich institutional purchasers of XRP, as they have already profited from their dealings with Ripple.
“Can you imagine wiring tens of millions of dollars to big institutions that already made a profit from their interaction with Ripple? That has to happen. The clearest part of this whole picture is that the [disgorged]money has to go to these ‘victims,’” Attorney Murphy remarked further.
As anticipated, Murphy’s recent assessment prompted responses from other XRP-supporting attorneys, among them Attorney Bill Morgan.
In his reaction, Attorney Morgan lambasted the SEC for its intention to potentially enrich institutional customers of XRP through its disgorgement request. He also labeled the SEC’s disgorgement demand as one of the peculiarities in the Ripple lawsuit, offering no benefit to any party involved.
😂 have a listen. The SEC wants to make Ripple ‘s sophisticated institutional customers richer at Ripple’s expense by the remedy of disgorgement. This is just one anomaly of many of this crazy lawsuit that is literally protecting nobody. https://t.co/pSwrURfxAB
— bill morgan (@Belisarius2020) May 14, 2024
In the interim, both parties have submitted the requisite remedies-related brief. Presently, they are engaged in the process of submitting omnibus motions to seal confidential information linked to the remedies brief
