Stuart Alderoty Ripple chief legal officer emphasised SEC’s continuing failure following a recent court update
In a critical milestone for Ripple and the broader cryptocurrency industry, the Second Circuit Court of Appeals has refused to review its ruling in the case of the SEC v. Govil, continuing the SEC’s losing streak.
Ripple Chief Legal Officer Stuart Alderoty Points SEC Failure
Stuart Alderoty, Ripple Chief Legal Officer, emphasizes the SEC’s recent failures. Alderoty emphasizes the importance of the most recent court decision, which determined that if a buyer suffers no financial loss, the SEC is not entitled to disgorgement from the sale.
This position may be especially pertinent to Ripple’s litigation, in which the SEC has demanded a large sum—$2 billion in fines and penalties.
“The SEC continues to lose. The Second Circuit Court of Appeals refused to reconsider their decision in Govil, which held that if a buyer suffers no financial loss, the SEC is not entitled to disgorgement from the seller,”.
Stuart Alderoty, Ripple Chief Legal Officer
The case of SEC v. Govil centred on allegations that Aron Govil made fraudulent securities offerings through his company, Cemtrex.
SEC Losing Streak Continues
Last November, the SEC suffered a severe setback in the action when the 2nd Circuit held that the SEC could not seek a crippling disgorgement amount without first demonstrating that “investors” suffered actual financial harm.
In other words, there is no damage or foul. This development is seen as a good indicator of Ripple’s legal defence. The verdict could help the firm strengthen its argument against the SEC’s requests.
Furthermore, the Second Circuit Court’s failure to reconsider its ruling in Govil may have far-reaching implications for the SEC’s action against Ripple. Ripple could utilize this ruling to challenge the SEC’s assertions about the disgorgement it seeks.
The significant dates to watch in the Ripple-SEC litigation are April 22, when Ripple responds to the SEC on the $2 billion in penalties sought, and May 6, 2024.