Title: Attorney Murphy Highlights “Crazy” Aspect of SEC’s Disgorgement Demand in Ripple Lawsuit
As Ripple and the SEC await the court’s ruling on remedies in their ongoing legal battle, prominent legal expert James “MetaLawMan” Murphy has shed light on the SEC’s demand for disgorgement, calling it “crazy.”
In the SEC v. Ripple lawsuit, disgorgement involves surrendering all ill-gotten gains obtained through unlawful activities. The SEC has requested a nearly $2 billion penalty against Ripple, with $876.3 million in disgorgement, $876.3 million in civil penalties, and $198.15 million in prejudgment interest.
Attorney Murphy pointed out that the U.S. Supreme Court has clarified that all disgorgements should go to the victims of the case. In this case, the so-called victims are institutional buyers of XRP, who would receive the disgorged funds if the SEC’s demand is met.
Murphy highlighted that directing the disgorged funds to institutional buyers of XRP would only make them richer, as they have already profited from their interactions with Ripple. Ripple has also argued against disgorgement, stating that it would be conferring a windfall to institutional buyers who have already benefited.
Other pro-XRP lawyers, including Attorney Bill Morgan, have criticized the SEC’s disgorgement demand, calling it an anomaly in the lawsuit that protects nobody.
As the parties await the court’s decision on remedies, they are currently filing omnibus motions regarding sealing confidential information associated with the remedies brief.
The insights provided by Attorney Murphy and the reactions from other legal experts add a new dimension to the SEC v. Ripple lawsuit, highlighting the complexities and controversies surrounding the case.
