Institutional Investors Sent into Panic by SEC’s Allegations in Ongoing XRP Lawsuit

Bill Morgan recently discussed the potential legal challenges that Ripple may face as a result of its ongoing legal battle with the U.S. Securities and Exchange Commission (SEC).

While Morgan’s analysis may be limited in scope and prone to exaggeration, his point regarding the company’s institutional sales practices is worth exploring in relation to Ripple’s project and its impact on prices and other factors.

Two days ago, the SEC filed a chart outlining the proposed remedies, with today being the official date for public disclosure. Based on the historical interview, it is apparent that the SEC is seeking a $7 billion settlement for damages and fines.

Following this announcement, Bill Morgan took to Twitter to express his concerns regarding the SEC’s allegations about Ripple’s institutional sales. He highlighted the SEC’s claim that Ripple’s discounted sales had harmed other institutional investors, resulting in $480 million in losses.

According to Morgan, this statement suggests that investors who did not receive discounts may now have grounds to file class-action lawsuits against Ripple. He suggests that timing would be crucial for these thematic lawsuits to establish causation.

Additionally, Morgan points out that the SEC’s classification of Ripple’s sales to institutions as investment contracts implies that the disclosure of discounts should have been made if the sales had been registered. This further complicates the legal proceedings and emphasizes the importance of transparency in cryptocurrency transactions.

Overall, while Morgan’s analysis may have its limitations, it raises valid concerns about the potential legal challenges Ripple may face due to its institutional sales practices.