Regulation
Ripple Presses Court to Dismiss SEC’s Expert Evidence
Ripple Labs Inc. has ramped up its court fight with the US Securities and Exchange Commission (SEC) by submitting a lengthy letter to substantiate its motion initially made on April 22, 2024. This motion seeks to eliminate the expert testimony submitted by the SEC that Ripple considers inappropriate.
The action by Ripple follows the SEC’s opposition letter dated April 29, 2024, in which it defended the admissibility of the testimony challenged.
Expert Testimony or Summary Evidence?
Ripple’s main dispute revolves around the Declaration of Andrea Fox, which it claims to be an expert testimony rather than mere summary evidence as contended by the SEC. Ripple argues that Fox’s declaration applies specialized accounting knowledge to evaluate financial statements and make inferences that surpass basic arithmetic. Ripple asserts that this clearly satisfies the requirements of an expert witness as outlined in Federal Rule of Evidence 702(a).
#XRPCommunity #SECGov v. #Ripple #XRP @Ripple has filed a letter in further support of its April 22, 2024 motion to strike new expert materials, and in reply to the SEC’s April 29, 2024 opposition to that motion to strike. pic.twitter.com/vXW1C22Oso
— James K. Filan 🇺🇸🇮🇪 (@FilanLaw) May 2, 2024
On the other hand, the SEC contends that Fox was to give a plain summary of the large amount of Ripple’s financial data, which does not require the substantial expertise typical of expert witnesses.
They claim that her analysis was mostly basic calculations designed to make the perception of the data and not to give expert opinions on financial issues.
Timeliness and Disclosure Disputes
Further important concern raised by Ripple is the timeliness of the Fox Declaration. Ripple accuses the SEC of failing to name Fox as an expert witness in the schedules stipulated by the court, which is done to guarantee that both parties have a period to react to evidence given during the court appearance.
Ripple insists that this inattention prevents them from fully conducting a cross-examination and detracting from the fairness of the trial process.
Meanwhile, the SEC opposes this argument by claiming that Fox did not need to be documented as an expert since she was a summary witness whose testimony was based on pre-existing records and simple calculations.
Precedents and Legal Interpretations
The reply brief of Ripple refers to a number of cases where courts have stricken declarations similar to Fox’s as undisclosed expert testimony disguised as fact summary. They contend that prior decisions are in favor of their stance that not properly classifying and disclosing the nature of a witness’ testimony can mislead both the opposing party and the court, thus justifying the exclusion of such testimony.
The SEC contradicts this view of the plaintiffs. It compares this case to other cases where summary witnesses were admitted without the need for a formal expert disclosure. They stress that the procedural environment and the content of the testimony dictate the requirement for these disclosures.
The result of this motion could have serious consequences in the upcoming litigation between Ripple and the SEC. If Ripple manages to get the Fox Declaration from the record, it could potentially limit the SEC’s ability to argue for specific penalties implied by the disputed calculations in Fox’s testimony. On the other hand, a successful declaration would reinforce the SEC’s case by providing a foundation for its claims against Ripple.
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The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
A Russian national accused of cryptocurrency market manipulation has been extradited to the United States to face federal charges. Aleksei Andriunin, the Gotbit Founder, appeared in a Boston court following his extradition from Portugal, where he had been residing.
Gotbit Founder Extradited to US Over Crypto Fraud
Gotbit Founder Andriunin, 26, was arrested in Portugal on October 8, 2024, following an indictment by a federal grand jury in Boston. He was extradited to the United States on February 25, 2025, and appeared in court the following day. A judge ordered his detention while awaiting further proceedings.
The U.S. Attorney’s Office in Massachusetts announced his extradition, stating that the Gotbit founder faces charges of wire fraud and conspiracy to commit market manipulation and wire fraud. Prosecutors allege that Andriunin led a scheme that manipulated cryptocurrency markets and generated millions in fraudulent proceeds.
Court documents state that between 2018 and 2024, Andriunin and his company, Gotbit, provided market manipulation services to cryptocurrency firms. Gotbit allegedly engaged in “wash trading,” which involves artificially inflating trading volume to make digital tokens appear more valuable.
This Is A Developing News, Please Check Back For More
Kelvin Munene Murithi
Kelvin is a distinguished writer with expertise in crypto and finance, holding a Bachelor’s degree in Actuarial Science. Known for his incisive analysis and insightful content, he possesses a strong command of English and excels in conducting thorough research and delivering timely cryptocurrency market updates.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
The US Securities and Exchange Commission is undergoing a significant transformation under President Donald Trump’s administration, paving the way for a major regulatory overhaul. In an attempt to dismantle its enforcement regulations, the SEC has ended major crypto lawsuits, sparking optimism. However, former SEC official John Reed Stark criticizes this regulatory shift, addressing it as the agency’s death.
SEC Closes Crypto Lawsuits Sparking Criticism from Ex-Official
The restructured SEC is spearheading a major regulatory overhaul under President Donald Trump. As a result, the regulators settled prolonged crypto lawsuits initiated during former Chair Gary Gensler’s tenure. While the commission’s move sparked widespread enthusiasm within the crypto space, former SEC official John Reed Stark expressed sharp criticism via his recent X post.
Notably, the agency has resolved multiple crypto lawsuits involving Coinbase, Robinhood, Uniswap, and OpenSea. The SEC’s progressive approach has invoked enthusiasm regarding a potential revolution in the US crypto regulatory landscape.
However, Stark views this regulatory shift as a symbol of destruction. He deems it as the commission’s death, stating, “This is How the SEC Dies.”
Are All SEC-Crypto Lawsuits Paused?
In a previous post, Reed highlighted the agency’s recent regulatory shifts that resulted in the resolution of major crypto lawsuits. Specifically, the SEC dropped the Coinbase and Robinhood lawsuits initially. And in a recent move, the regulators put an end to the investigations surrounding Uniswap and OpenSea. In addition, the agency has frozen the Binance lawsuit, marking at least five “pauses” in crypto lawsuits.
The SEC’s Frantic and Unprecedented Rampage to Dismantle its Crypto-Enforcement Program Continues: This Time, Halting Two SEC Appeals Dead in Their Tracks (Buckle up XRP Army, the Ripple Appeal Has Got To Be Next on the SEC Chopping Block)
The U.S. Securities and Exchange… pic.twitter.com/y6cMnhVRoi
— John Reed Stark (@JohnReedStark) February 20, 2025
These developments have significantly sparked anticipations on the potential settlement of the XRP lawsuit. Despite speculations from legal experts of a potential delay in the lawsuit, Reed believes that the Ripple case would end next. In addition, expressing thoughts on the SEC’s possible move to end all existing crypto lawsuits, Reed stated,
The SEC crypto-enforcement carnage has really just begun to litter the streets. My guess is that all SEC crypto-related investigations have already been secretly “paused” and that SEC crypto-enforcement resources have already been shifted to other priorities.
SEC’s Regulatory Shift: A New Era or Demise?
“The U.S. Securities and Exchange Commission (SEC) continues its frantic race to eliminate all fragments, remnants and artifacts of its crypto-enforcement program,” stated Stark. According to the ex-official, the SEC’s current could lead to the complete destruction of the commission. He posited,
It’s the perfect storm at the SEC: A President who does not trust the SEC; A crypto czar who has no respect for the SEC; And a DOGE Director Who hates the SEC. That’s not good for SEC staff.
Stark believes that Elon Musk’s Department of Government Efficiency (DOGE) will soon restructure the regulatory agency, possibly including a reduction in workforce. In a sarcastic tone, he posited that the current shift, including the crypto lawsuits’ updates, could possibly pave the way for the regulator’s funeral.
Nynu V Jamal
Nynu V Jamal is a passionate crypto journalist with three years of experience in blockchain, web3, and fintech spheres. She has established herself as a knowledgeable and engaging voice in the cryptocurrency and blockchain space. Her experience as an Assistant Professor in English Language and Literature has further added to her quest for crafting informative, well-researched, and accessible content.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
The U.S. Securities and Exchange Commission (SEC) has acknowledged Grayscale’s filing for a spot Cardano (ADA) exchange-traded fund (ETF). This step marks the beginning of the SEC’s review process, which will determine whether the proposed ETF can be listed and traded on the New York Stock Exchange (NYSE) Arca.
Grayscale’s Spot Cardano ETF Filing Acknowledged
According to a recent filing, the SEC has acknowledged Grayscale’s application to list and trade its Cardano ETF on NYSE Arca. This ETF aims to provide investors with regulated exposure to Cardano (ADA), the cryptocurrency of the Cardano blockchain network.
Grayscale seeks to offer shares representing proportional interests in the ADA holdings of its proposed Grayscale Cardano Trust.
Grayscale submitted this application as part of its broader strategy to expand its cryptocurrency ETF offerings. In addition to the Cardano ETF, the firm is also pursuing ETFs based on other digital assets, including Solana (SOL), XRP, and Litecoin (LTC).
This move comes amid easing crypto regulations and dropping of crypto cases like Coinbase and Robinhood as a result of new leadership for the agency under acting US SEC chair Mark Uyeda.
This Is A Developing News, Please Check Back For More
Kelvin Munene Murithi
Kelvin is a distinguished writer with expertise in crypto and finance, holding a Bachelor’s degree in Actuarial Science. Known for his incisive analysis and insightful content, he possesses a strong command of English and excels in conducting thorough research and delivering timely cryptocurrency market updates.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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