Fagel Dispenses Legal Wisdom to XRP Holders, FTX Users

Marc Fagel, a former SEC director and securities litigation expert, has taken to social media to offer XRP holders and users of the troubled cryptocurrency exchange FTX “free legal advice.”

The advice is given against a lawsuit filed by the exchange’s new management against the parents of its former chief, Sam Bankman-Fried, to recover millions of dollars allegedly misappropriated.

Bankman reportedly received considerable amounts of money from Alameda as gifts.

At the same time, Fried played a significant role in the company’s political affairs and was compensated millions for her efforts.

In response to these events, CryptoLaw published a blog post criticizing the SEC’s priorities.

The post indicated that the SEC, under the supervision of Chairman Gary Gensler, had allocated significant resources to target XRP holders, Ripple, LBRY, and Coinbase while allowing well-connected individuals to go unpunished until their actions received public attention.

Fagel, drawing on his vast experience in securities law, contributed to the discussion by advising against evading SEC supervision on purpose.

He remarked sarcastically that deliberately circumventing the SEC by engaging with unregistered entities in the cryptocurrency space can result in legal consequences, which FTX users and XRP holders have experienced.

When asked about the wisdom of companies engaging with the SEC, Fagel emphasized that for most companies, such compliance is not optional.

He added that, if necessary, the regulator can issue a subpoena if the company refuses to cooperate.