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I’m not a Securities lawyer so I’m not going to get into the weeds of facts or allegations surrounding the SEC v. XRP lawsuit, but I do want to talk about the hypocrisy in this thread. In looking at the lawsuit, the SEC has failed at its duty in protecting American citizens(1/10)
The SEC’s mission statement is to “protect[] investors, promote[] fairness, and share information about companies . . . to help investors make informed decisions and invest with confidence.” The SEC has done the exact opposite in this lawsuit. @SEC_News (2/10)
In its complaint, the SEC alleges that Ripple has been selling unregistered securities from 2013-present (p. 2). In its complaint, the SEC admits that its at least known of the potential issue since April 1, 2019 (p. 67). However, it is clear they’ve known about xrp much (3/10)
Longer than that. This means, that at the very least, the SEC knew that it may bring an action against Ripple since early 2019 and said nothing despite its obligation to protect investors and share information to help investors make informed decisions. (4/10)
Now, this may not be enough for you, BUT, here’s the kicker. The night before the lawsuit was filed, the CEO of @Ripple, @bgarlinghouse announced of the incoming lawsuit on twitter. He then later showed the contents of an email he sent to his employees the night before (5/10)
Let’s break this down. The SEC believed that Ripple was engaged in illegal securities sales, and went as far as alleging market manipulation and bad faith in its complaint (although not officially pleading them in their prayer for relief), but then turned around and gave (6/10)
The company that they believed to be the bad actors at least a 24 hour notice before the public that an action was coming. With this information, Ripple could have dumped their massive available XRP supply on the market, they could have informed their partners, etc. etc. (7/10)
I’m not saying Ripple did this, I’m saying that the SEC has alleged these exact acts in its complaint, and then gave the company that it believed to be a bad faith actor at least 24 hours notice before the public. That doesn’t sound like “protecting investors” to me (8/10)
That doesn’t sound like sharing information about companies to help investors make informed decisions and invest with confidence. It sounds like bad governance. It sounds like a tragic failure of the confidence instilled in them by the American people. (9/10)
As a kicker, the chairman of the SEC, Jay Clayton resigns the exact next day. I’m not a big believer in coincidence. It it looks and quacks like a duck, it’s probably a failure of the American trust and legal system. This is disgusting. This is gross. I am ashamed. (10/10)
