SEC accuses the XRP Army of making “false statements” against their leadership on p. to have done

The ongoing lawsuit between Ripple Labs and the U.S. Securities and Exchange Commission continues, with the regulator claiming that XRP token holders are attacking their members on social media platforms with allegedly false statements.

In a petition filed Thursday with Judge Sarah Netburn in the southern borough of New York City, the SEC requested a conference call to withdraw a petition from Ripple to summon former director, the regulator’s corporate finance division, William Hinman to discuss. The SEC argued that if approved, Ripple’s motion would set a precedent for the company to “march to seek testimony from senior government officials” and interfere in US government operations.

“Leave the defendant [Ripple] The removal of Director Hinman would likely result in Director Hinman being served by several other subpoenas for dismissal accused of violating the registration requirements of the securities laws during his tenure with the SEC, the petition said. “Such an outcome not only places a significant burden on Director Hinman, but also makes other capable individuals reluctant to serve in senior positions with the SEC for fear of years of litigation.”

One of the SEC’s arguments in the movement against bringing down Hinman through Ripple is that supporters of the XRP token – also known as the XRP Army – are accused of using social media “to make negative and false statements about members to spread”. of SEC leadership ”, including former directors. The commission stated that distance coupled with social media attention could discourage individuals from seeking employment in the public sector.

The SEC filed a lawsuit against Ripple in December, accusing the company, CEO Brad Garlinghouse and co-founder Chris Larsen, of “an ongoing, unregistered offering of digital asset securities” with their XRP token sale. Following the announcement by the commission, several crypto exchanges have either stopped XRP trading or delisted the token entirely. Garlinghouse also said in March that Ripple agreed to “decline” its partnership with global money transfer service MoneyGram.

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In response to the SEC lawsuit, Ripple stated that XRP was like Bitcoin (BTC) or Ether (ETH), both of which are classified as a commodity rather than a security by the regulator. Members of the XRP army also appear to have focused much of their online activities on the SEC case with Ripple, specifically relating to Hinman.

Some of the ideas on social media promoted by XRP token holders through the SEC’s leadership include the committee members committee Work Making China’s economy larger than the United States, examining former Presidents Jay Clayton and Hinman, and occasionally comparing one or more members to Lizardmen:

So it is our friend Hinman! I can’t imagine what they want to discuss. pic.twitter.com/2hmiId75zM

– Jungle Inc (@jungleincxrp) June 25, 2021

Members of the XRP Army have also launched an online campaign to purchase exchanges based on the token in the SEC lawsuit. In April, the XRP price hit an annual high of $ 1.78 and stayed above $ 1.00 for a month. At the time of writing, XRP is $ 0.63 after falling over 35% in the past 30 days.