Pro-XRP lawyer John Deaton has clarified that his decision to buy more XRP after Ripple was sued in 2020 was not based on insider information.
Following legal action against Ripple in 2020, the price of XRP witnessed a significant decline as many XRP holders feared the worst for the cryptocurrency.
The United States Securities and Exchange Commission (SEC) had labeled XRP a security and filed lawsuits against Ripple and its executives, Brad Garlinghouse and Chris Larsen.
However, amid the drop, John Deaton, a crypto-focused attorney, acquired more XRP with a conviction that Ripple would win the lawsuit. Now, John Deaton has once again defended the move he made at the time while clarifying that it was not based on any insider information.
Specifically, Deaton was replying to an apparent crypto investor who alleged that the lawyer’s XRP purchase may be considered a form of “insider trading.”
X user Symbio claimed that Deaton buying XRP when “he had the case in the bag” would constitute insider trading. Having the case in the bag evidently means that the lawyer was convinced that Ripple would emerge victorious at the end of the day.
There Was No Insider Information, Deaton Says
Although Ripple has now enjoyed successive victories against the SEC and seen lawsuits against its executives withdrawn, Deaton notes that such an outcome was not what many expected.
Not at all. There was no insider information. Everything was public. Many more experienced securities lawyers said it wasn’t in the bag and XRP would be deemed a security.
— John E Deaton (@JohnEDeaton1) December 3, 2023
In fact, many more “experienced securities lawyers” claimed that it would not be an obvious win for Ripple and that “XRP would be deemed a security.” However, Deaton went up against the majority because he knew that Ripple and the XRP army would win.
Besides, he described the move as ‘betting on himself and betting that the judge would follow the law.’ Symbio confirmed that he was joking with his earlier remark, emphasizing that it is near impossible to have insider information in such case.
Notably, since his bet, Deaton has reaped the rewards for backing Ripple and XRP at a point when many jumped ship.
The pro-XRP lawyer has continued to show his unwavering support for the project. He recently predicted that any eventual settlement for the Ripple SEC lawsuit would be worth less than what the company has spent on legal fees.