SEC accuses XRP Army of providing negative and false statements about the regulator
In a new series of developments in the Ripple lawsuit, the US Securities and Exchange Commission alleges that XRP holders are making false claims about the regulator on social media platforms.
In one recommendations The SEC was sent to Judge Sarah Netburn of New York’s southern borough on Thursday, requesting a conference to discuss the reversal of a subpoena on behalf of Ripple’s former SEC chief financial officer, William Hinman. The SEC argued that if approved, Ripple’s move would set a precedent for the company to “solicit testimony from senior government officials” and interfere in US government affairs.
“Admit the defendants [Ripple] Director Hinman’s testimony could label Hinman during his tenure with the SEC in violation of the registration requirements of the securities laws. Such an outcome not only weighs on Hinman himself, but also makes other capable individuals reluctant to take on senior positions with the SEC for fear of getting involved in litigation.
One of the SEC’s arguments against Ripple accepting a statement from Hinman is that supporters of the XRP token – the XRP Army – are being accused of using social media “to make negative statements.” the former director. The commission stated that subpoenas combined with social media attention could prevent people from working for government agencies.
The SEC filed a lawsuit against Ripple in December, accusing Ripple, CEO Brad Garlinghouse and co-founder Chris Larsen, of making an “unregistered offering of digital assets” through their XRP token sale. Following the announcement by the commission, several crypto exchanges have suspended trading or delisting of tokens. Garlinghouse also said in March that Ripple agreed to end its partnership with global money transfer service MoneyGram.
In response to the SEC lawsuit, Ripple stated that XRP is like Bitcoin or Ether, which the regulator classifies as a commodity rather than a security. Members of the XRP army also appear to have focused much of their online activities on the SEC lawsuit against Ripple, particularly with regards to Hinman.
Some of the social media comments encouraged by XRP owners about the SEC’s leadership include how the committee members’ work led the Chinese economy to overtake the US, urging former Presidents Jay Clayton and Hinman to to be examined, and occasionally one or more members compare cold-blooded reptilian creatures:
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 get exchanges to re-list the token despite the SEC lawsuit. In April, the XRP price hit an annual high of $ 1.78 and stayed above $ 1 for a month. At the time of publication, the XRP is $ 0.61 after falling more than 35% in the past 30 days.
According to Cointelegraph