Attorney Jeremy Hogan, who has been tracking the case, said the amended complaint contains more details about the accused, Brad Gallinghouse, head of Reflaps and Chris Larsen Ripple, co-founder.
# Larsen and Garlinghaus Jung Aim
According to AMB Crypto, paragraph 10 of the complaint contains a new claim that “Larsen and Garlinghaus played an important role in the sale of Ripple to individual and institutional investors.”
Hogan said his attitude toward the two defendants was unusual, given that the SEC usually does not prosecute’individuals’ related to virtual asset issuers. “It is rare for the SEC to prosecute two executives as accused,” he explained.
Larsen and Garlinghaus were charged with violating Article 5 of the Contract Act for offering and selling unregistered securities. The SEC is currently demanding comments from a Ripple attorney, and a new complaint alleging by the SEC contains a warning from the SEC that Ripple may be a securities.
Hogan said such documents (such as comments) could be concealed by the attorney’s authority to protect the client, but if the SEC was given access to it, it could have a negative impact on Garlinghaus and Larsen.
# “Ripple management deeply involved”
AMB Crypto reported that the reason for the amendment to the complaint may be because Ripple attorneys announced their intention to file a dismissal last week. The SEC reportedly revised the complaint to avoid filing for dismissal.
Hogan predicted that Ripple’s attempts to dismiss the case would be unsuccessful, given new factual evidence that Ripple’s management was deeply involved in the alleged sale of undocumented securities. He also The reason the SEC targets the two may be that they have too much of a Ripple token during the distribution process.Expected. According to AMB Crypto, this is a problem that the Ripple community has previously complained about.
Shortly after the revised complaint was filed, Stuart Alderotti, who serves as legal counsel at Reflaps, told Twitter, “It’s disappointing that the SEC decided to settle it after waiting years to file the complaint.”