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HomeCrypto NewsMarketSEC's Case Against XRP is a Rug Pull - Ripple's General Counsel

SEC’s Case Against XRP is a Rug Pull – Ripple’s General Counsel


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Ripple’s General Counsel says, ‘US citizens are the victims of a rug pull by the SEC.’

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The SEC-XRP court took a new dimension at the last court hearing as both SEC and XRP reached an accord over the summary judgment. This summary judgment is now scheduled for December 20, 2022. However, many XRP investors are disappointed as they were expecting a resolution earlier than this time.

Nevertheless, one of Ripple’s general counsels, Stuart Alderoty, has made a sensational claim. Following a new date for the summary judgment, Alderoty updated the Twitter crypto ecosystem about it and added that this SEC’s case against Ripple could be likened to a rug pull against XRP holders. While he thanked the crypto community for their support and the XRP community for their continued patience, Alderoty took a jibe at SEC chief Gary Gensler. 

“To all that have been following the case thus far – thank you… It now looks like a resolution will happen in 2023, and each day that passes is hurting US citizens who were essentially the victims of a rug pull by the SEC,” Alderoty wrote on Twitter. Many XRP investors would hope that Alderoty is right and the case would be genuinely over in 2023.

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He accused Gensler of stifling the crypto space and forcing many blockchain-related tech firms to move their businesses to crypto-friendly climes. He added that the SEC keeps claiming that almost all tokens are securities. Yet, when they ask them to list such tokens, they always have no list, proving that they were only making claims without having any proof to support their claims.

 Alderoty also said the SEC’s lack of proof against tokens being securities or oversight functions over the crypto industry (now valued as a $2 trillion industry) is why they can’t shut down on crypto exchange. Hence, they are always using any means to confuse market players. Alderoty further explained that Ripple agreed to the December 20 briefing date to prevent the SEC from additionally having any grounds to prolong the case.

SEC is making efforts to make extend the Ripple case to next year – Alderoty

Over the weekend, Alderoty stated that the SEC is attempting various delay tactics to ensure its legal battle with Ripple continues until next year. The prolonged SEC-Ripple court battle has negatively impacted the value of XRP (Ripple’s governance token) since the case began nearly two years ago. Many crypto exchanges quickly delisted XRP tokens from their trading platforms immediately SEC filed the lawsuit.

Crypto Talent Going Outside US

Stuart Alderoty said that much of the crypto talent and wealth is fleeing the US due to these uncertainties.

“Already, we’re seeing a massive transfer of crypto talent, tech, and wealth moving offshore to jurisdictions with rational regulatory frameworks. Entrepreneurs are being advised not to start their projects in the US.?”



Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.



Ammara Mubin is a cryptocurrency reporter and trader with vast experience in the industry. Mubin has written several news stories related to the crypto industry, including non-fungible tokens (NFTs), decentralized finance (DeFi), fundraising, mining, etc. Her major focus is covering regulatory events that are capable of shaping the entire crypto ecosystem.

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