John Deaton Says Why SEC does not see Jed McCaleb “earning $2.56B from sales of XRP SINCE THE DATE THE LAWSUIT WAS FILED!”
Attorney Deaton noted that if the SEC is convinced that Ripple breached its laws via its 2013 ICO, then the agency should have added McCaleb because he made more money than the $1.3 billion disgorgement fee.
Attorney John Deaton said if the SEC claims that Ripple and two of its executives, Chris Larsen and Brad Garlinghouse, raised $1.3 billion at the expense of investors, then the company’s co-founder Jed McCaleb should also be roped into the lawsuit for earning more.
According to Deaton, who requested to represent over 68,000 XRP investors in the upcoming Daubert challenge of one of SEC’s experts, McCaleb made more money than the $1.3 billion disgorgement fee the agency seeks.
The SEC claims #XRP itself is a security and anyone who sells it is violating Section 5 of the Securities Act. The SEC claims @Ripple @bgarlinghouse & @chrislarsensf “enriched” themselves at the expense of investors and it is seeking $1.3B in disgorgement from these defendants. https://t.co/9nJ1iNroth
— John E Deaton (206K Followers Beware Imposters) (@JohnEDeaton1) July 18, 2022
McCaleb Sold His XRP After SEC Filed Charges Against Ripple
Recall that the Ripple co-founder and former CTO was gifted 9 billion units of XRP for his contributions to the project.
After McCaleb left Ripple, the company and two of its executives were charged by the Securities and Exchange Commission for selling unregistered securities in the U.S. The SEC capitalized on the fact that Ripple raised $1.3 billion at the expense of investors.
While the SEC faced charges in the U.S. for allegedly violating the country’s securities law, McCaleb had consistently sold XRP to investors.
In the aftermath of the lawsuit, McCaleb earned $2.56 billion from selling his XRP.
“Yet, the co-founder, Jed McCaleb, earned $2.56B from sales of #XRP SINCE THE DATE THE LAWSUIT WAS FILED!
That is nearly DOUBLE the amount the SEC seeks from the Defendants that were sued. It should be noted that Ripple has also sold XRP since the lawsuit was filed as well,” attorney Deaton said.
Attorney Deaton Ripple’s Co-Founder Should Be Sued
While attorney Deaton noted that he does not have anything against McCaleb’s sales of his XRP gift, he believes the Ripple co-founder should also be added to the list of Defendants like Garlinghouse and Larsen.
“But, if you accept the SEC’s allegations as true, he has been violating the law and enriching himself,” he said.
Attorney Deaton added that he did not mean to draw the SEC’s attention to the former Ripple executive. However, his main focus is on the fact that the SEC’s claims have been inconsistent and illegitimate.
The lawyer who was granted Amici status in the lawsuit added that if the agency is convinced that Ripple violated U.S. securities laws, it would have stopped the company and McCaleb from selling more XRP.
“If it’s clearly illegal, you don’t allow the Defendants to keep breaking the law so they can pay their attorneys to make sure that they can continue breaking the law,” attorney Deaton said.
If it’s clearly illegal you don’t allow the Defendant to keep breaking the law so they can pay their attorneys to make sure that they can continue breaking the law.
2) The 2nd thing they would’ve done is used a cease and desist letter to the co-founder to stop his sales. Why?
— John E Deaton (206K Followers Beware Imposters) (@JohnEDeaton1) July 18, 2022
Ripple Continued Selling XRP Despite Lawsuit
Despite the ongoing lawsuit, Ripple has not ceased to sell at least 200 million units of XRP after unlocking the usual 1 billion XRP monthly. The idea behind selling the token is mostly to cater to the company’s day-to-day expenses.
With the SEC lawsuit being the major issue Ripple is currently facing, it is safe to assume that a majority of the revenue generated in monthly sales is channeled to paying attorneys’ fees.
Last week, Garlinghouse said Ripple would have spent over $100 million by the end of the lawsuit.
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.
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