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Ripple recently moved 200 million XRP million, stirring speculation about the purpose of the transfer. The company has not provided any official explanation, though some industry observers believe it could be connected to the firm’s ongoing dispute with the U.S. Securities and Exchange Commission (SEC).
Ripple’s 200 Million XRP Transfer
The blockchain payments firm shifted a whopping 200 million XRP, valued at over $109 million, to an unidentified wallet today, according to Whale Alert data. Netizens speculated that the transfer could be related to legal proceedings in the SEC lawsuit. However, as of now, the exact motivation behind the transaction remains unclear.
This development occurs as the XRP firm’s legal battle with the SEC continues to unfold. Stuart Alderoty, Ripple’s Chief Legal Officer, recently shared his thoughts on the case, particularly regarding the upcoming decision from the U.S. Second Circuit Court of Appeals. The case revolves around the SEC’s accusations that the XRP token is an unregistered security.
🚨 🚨 🚨 🚨 🚨 200,000,000 #XRP (109,416,737 USD) transferred from #Ripple to unknown wallethttps://t.co/w8bqGKNC6C
— Whale Alert (@whale_alert) October 21, 2024
Alderoty expressed confidence in the firm’s position, noting that the appellate court will either uphold the ruling made by Judge Analisa Torres or build upon it. “The Second Circuit will either affirm Judge Torres or expand her ruling,” Alderoty stated. He downplayed the likelihood of the SEC securing a remand. He remarked, “The best the SEC can hope for (and it’s a remote hope) is a remand.”
Judge Torres’s initial decision, which largely favored Ripple, has become a focal point of the case, especially her stance on the Fair Notice Defense. This defense argues that Ripple had no fair notice that its actions were unlawful.
According to Alderoty, Judge Torres had made it clear during the SEC’s appeal attempt that her initial judgment still stood, and Ripple’s defenses, including Fair Notice, would remain significant if the case returned to her court. “During the SEC’s failed ‘interlocutory’ appeal, Judge Torres made it clear that ‘Howey’ and all of Ripple’s defenses, including Fair Notice, would then be back on the table.”
The Fair Notice Defense brings into question whether the SEC provided clear guidance that Ripple’s XRP token was subject to securities regulations. Alderoty framed the situation humorously and stated, “The SEC could end up arguing to Judge Torres that she wasn’t a person of ‘ordinary intelligence’ when she ruled against them. Awkward.”
Alderoty likened the SEC’s ongoing pursuit of Ripple to Herman Melville’s famous novel Moby Dick, casting SEC Chair Gary Gensler as the determined Captain Ahab. “This case has always felt like Moby Dick (with Gensler starring as Captain Ahab),” Alderoty remarked. Adding another pop culture reference, he said the situation now resembles a combination of Moby Dick and the courtroom comedy My Cousin Vinny, underscoring the unexpected twists the case has taken.
Other Possible Reason Behind Transfer
In addition to the ongoing legal drama, Ripple founder Chris Larsen recently made headlines for donating $10 million to Future Forward, a super PAC supporting Vice President Kamala Harris’s 2024 presidential campaign. Speculation is mounting that further donations could be made via Ripple. Moreover, some tied the recent transfer of 200 million XRP to these political contributions toward Democrats. Nonetheless, these claims hold no truth as of yet as the officials have not opened up on the humungous transfer currently.
For now, the next key development in Ripple’s legal fight will be the ruling from the U.S. Second Circuit Court of Appeals. The decision could shape the future regulatory landscape for cryptocurrencies in the U.S., while the XRP firm continues to defend itself against the SEC’s claims.