Former SEC Lawyer Says There Will Not Be Monetary Recovery for Early XRP Investors
As the legal battle between Ripple and the U.S. Securities and Exchange Commission (SEC) continues, a former SEC lawyer has weighed in on the issue, stating that early XRP investors may not be able to recover their losses.
According to a recent report, Alma Angotti, a former SEC official, said in a statement that while the SEC may be successful in its lawsuit against Ripple, it is unlikely that early XRP investors will be able to recover any losses they may have incurred.
Angotti explained that the SEC’s lawsuit against Ripple is primarily focused on whether the company violated securities laws by selling XRP as an unregistered security. If the court rules in favor of the SEC, Ripple could be forced to pay fines and other penalties, but there may be no mechanism for early XRP investors to recover their losses.
Angotti noted that unlike other securities lawsuits, where investors can file individual claims for damages, the nature of the XRP market may make it difficult for investors to prove that they suffered losses as a result of Ripple’s alleged misconduct. In addition, the fact that XRP is traded on multiple exchanges and that its price is influenced by a variety of factors makes it challenging to determine a clear cause-and-effect relationship between Ripple’s actions and investor losses.
Despite this, some early XRP investors have filed a class-action lawsuit against Ripple, alleging that the company violated securities laws by selling XRP as an unregistered security. However, the outcome of this lawsuit remains uncertain, and it is unclear whether it will be successful in securing monetary recovery for affected investors.
The legal battle between Ripple and the SEC has been ongoing for several months, with Ripple disputing the SEC’s allegations and arguing that XRP should not be classified as a security. The outcome of the lawsuit could have significant implications for the broader cryptocurrency market, as it may influence how regulators view and regulate other digital assets.
In conclusion, while the legal battle between Ripple and the SEC continues, the question of whether early XRP investors will be able to recover their losses remains uncertain. As the former SEC lawyer Alma Angotti notes, the complex nature of the XRP market may make it challenging for investors to prove that they suffered losses as a result of Ripple’s alleged misconduct, and there may be no mechanism for them to recover their losses even if the SEC is successful in its lawsuit against Ripple.
