Ripple’s CTO and crypto lawyer criticize the SEC’s handling of the Debt Box case, citing government overreach. Defendants’ filings reveal false claims, causing financial and emotional strain. Now XRP Lawyers, including John Deaton, are frustrated with the SEC and Gary Gensler after the SEC dropped a $50 million fraud lawsuit against Debt Box, admitting to making false statements. Deaton harshly criticized Gensler’s leadership and urged SEC lawyers to adhere to the rules.
Legal Fraternity Lashes SEC Over Debt Box Case
Recently, SEC filed a Motion to Dismiss the charges against Debt Box. In this move, Federal judges, including Judge Torres, labeled SEC lawyers as hypocrites in the Ripple lawsuit. Making SEC’s legal arguments suspicious in other cases.
An Appellate Court ruled the SEC’s denial of a spot Bitcoin ETF as arbitrary. Deaton was shocked and said that the SEC is trying to protect dishonest lawyers from repercussions even though they have been found guilty. Further, Deaton suggested banning SEC lawyers from appearing in any cases presided over by the judge.
Other lawyers, like Jeremy Hogan and Bill Morgan, questioned the SEC’s strange moves. They pointed out the SEC argued a big fraud but suddenly backed off to avoid trouble.
XRP lawyers are just fed up with what they see as unfair lawsuits against crypto companies, accusing the SEC of playing games in the courtroom.
Even Coinbase’s Chief Legal Officer, Paul Grewal, shook his head at the SEC, criticizing them for causing trouble and then trying to walk away without consequences. It’s not just lawyers; Ripple’s CTO, David Schwartz, also called out the SEC for playing dirty in the Debt Box case.
Though SEC admitted its mistake, it was too late to stop the consequences as the defendants and the associated coin’s market value had already suffered, with a 56% drop.
Behind all these legal talks are real people. John Deaton emphasized that SEC lawyers must remember to deal with real lives and livelihoods. It’s not just about rules but about fairness and justice. This isn’t just a legal tussle; it’s a call for the SEC to be responsible and fair in handling crypto companies. People are watching and want fairness and justice, not just legal maneuvers.