Founder of Dizer Capital Yasin Mobarak predicts that the SEC will withdraw its charges against Ripple executives.
In a tweet yesterday, Mobarak predicted that the United States Securities and Exchange Commission (SEC) will withdraw its charges against Ripple executives – Chris Larsen (chairman) and Brad Garlinghouse (CEO).
SEC v. Ripple Trial
Mobarak gave the prediction shortly after Judge Analisa Torres, the judge in charge of the SEC v. Ripple lawsuit, announced April 23, 2024, as the date for the upcoming trial. The announcement follows the court’s denial of SEC’s interlocutory appeal request.
For clarity, the upcoming trial relates to the SEC’s case against Garlinghouse and Larsen. Recall that the SEC filed aiding and abetting charges against Garlinghouse and Larsen as part of its case against Ripple Labs.
The commission alleged that the execs were reckless in allowing Ripple to distribute XRP as an unregistered security. To resolve the issue, the court has scheduled a trial, which is expected to commence on April 23, 2024.
SEC Will Withdraw Charges Against Ripple Execs
However, Dizer Capital’s founder speculates that the SEC will withdraw the charges against Larsen and Garlinghouse. The expert noted that it would not be beneficial for the SEC to go through with a trial that could expose its corruption.
Prediction: The SEC will withdraw charges against @bgarlinghouse and @chrislarsensf .
It is not in their interest to have a trial where their corruption can be exposed, not to mention their agenda is far bigger than just these two executives. The longer $XRP solidifies the…
— Yassin Mobarak ? (@Dizer_YM) October 4, 2023
Additionally, he said the SEC’s agenda in the lawsuit is bigger than the company’s execs.
“The longer $XRP solidifies the clarity it has in the marketplace, the more that puts its entire agenda at risk,” he remarked.
According to Mobarak, withdrawing the charges against Ripple’s execs will help the SEC to end the case early and file a full appeal to the Second Circuit. This, according to Mobarak, will help the SEC to sustain the cloud of regulatory uncertainty in the industry.
SEC Could Expose Its Hidden Secrets If It Continues to Trial
It bears mentioning that Mobarak has previously speculated that the trial may not hold. As reported earlier, the expert speculated that the SEC might not proceed with the trial to avoid exposure of its past dealings.
He made the speculation after Steven Nerayoff highlighted SEC’s engagement with Ethereum, especially during the early sales of ETH.
Reacting, Mobarak speculated that if the SEC continues with the trial, Ripple could invite Nerayoff to provide further clarity on the allegations.
XRP Community Reacts
Meanwhile, XRP community members have reacted to Mobarak’s recent speculations regarding the SEC v. Ripple trial. Expectedly, several XRP community members have expressed doubts about the possibility of the SEC dropping the charges against Garlinghouse and Larsen.
Zero chance of this
— Chris O (@TheOCcryptobro) October 4, 2023
Prominent XRP influencer Sherrie is among those who do not think the SEC will withdraw the charges. Commenting on Mobarak’s prediction, Sherrie said she would be surprised to see the SEC drop charges against Garlinghouse and Larsen without receiving incentives from Ripple in return.
To be honest, I would be surprised if the SEC dropped charges against the individual defendants without some incentive from Ripple given to them. The only types of cases I have heard the SEC withdrawing are violations made by data protections that were meant to be in place.
— Sherrie ? (@CherryEmpress21) October 4, 2023
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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