THE SEC WAS WARNED INVESTORS WOULD LOSE BILLIONS. Considering the magnitude of an SEC enforcement action against the 3rd largest Digital Asset, XRP, the SEC, and it’s Chairman, Jay Clayton, was sent a letter, prior to the filing of the action, from former Chief Joseph Grundfest.

He warned Clayton and the SEC that the mere filing of the lawsuit, declaring XRP an unregistered security, “would result in an UNPRECEDENTED scenario of billions of
dollars in losses resulting from an exodus of intermediary market service providers.” That’s a direct quote from

a former Chief who saw all this coming. The “exodus of intermediary market service providers” has already taken place. @coinbase @krakenfx and almost every other service provider has suspended trading of XRP in the U.S. Others, like @BitwiseInvest and @Grayscale have liquidated

their XRP holdings. Remember, XRP has been publicly traded in the U.S. and globally for SEVEN PLUS YEARS with the SEC’s full awareness and implicit permission. The SEC was aware that XRP was being actively traded on over 200 exchanges globally, including in the U.S. Clayton was

warned by Grundfest that if the SEC initiated an enforcement action declaring XRP an unregistered security, in present day, these exchanges would have no choice but to delist and/or halt XRP trading from fear of an SEC action against them. Grundfest informed Clayton that he was

“aware of no instance in which the simple announcement of a commission’s enforcement procedure has, absent allegations of fraud or misrepresentation, caused multi-billion-dollar losses of innocent
third parties.” In the SEC’s Complaint against @Ripple, @bgarlinghouse and

@chrislarsensf, there are NO allegations of fraud or misrepresentation. Considering that no fraud was being alleged and the fact that XRP was allowed to be traded for over 7 years, Grundfest pleaded with with Clayton stating “NO PRESSING REASON COMPELS IMMEDIATE ENFORCEMENT

ACTION”. But Clayton and the SEC IGNORED this grave warning. Despite billions and billions of losses to innocent investors, the SEC filed the most significant SEC case in modern history. Considering no exigency existed and there was no immediate need to file the case, Grundfest,

himself, questioned Clayton’s and the SEC’s true motive. He said applying existing securities’ laws to #XRP but not #ETH calls into question the “commission’s discretion.” In short, Grundfest was saying “if today’s XRP is a security, so is ETH”. He was basically going on the

record and saying that not only did it NOT make any sense, but it would be fundamentally unfair for the SEC to file this action. He basically told Clayton and the SEC that if you file this case, claiming XRP is a security, it’s because of OTHER REASONS, unrelated to the law.

Clayton and others were well aware that the mere filing of the enforcement action, not limited to specific distributions of XRP directly from Ripple, but alleging that all XRP constitutes securities, could prove to be a KILL SHOT against Ripple and XRP.

Considering the magnitude of this case one would think that Clayton and the Enforcement Chief would certainly want to see it through. But, instead, they both left the SEC forever.