John Deaton Rejects XRP Buyback Plan – Find Out Why!
A renowned attorney, John E. Deaton, has taken to Twitter to clarify his stance on Jimmy Vallee’s XRP buyback proposal. The proposed terms of the XRP buyback mentioned making a payment to the attorney for his role in the US Securities and Exchange Commission (SEC) case against Ripple; however, Deaton asserts that he has no involvement with the proposal and will not accept any compensation for his efforts.
What Deaton Says
In the Twitter thread, Deaton stated that he has not and will not ask for money for his work on behalf of XRP or LBRY Credits (LBC) holders and will continue declining compensation offers. He admitted that his efforts have come at a cost but asserts that he is covering the costs himself because it is the right thing to do.
Jimmy Vallee of Valhill Capital 2021 put forward the XRP buyback proposal. Vallee believes that XRP has the potential to become the reserve currency of the world as national debts reach unsustainable levels.
He posits that the world will have to move to a new financial system with a liquid and scalable digital asset backing it and that XRP is this asset. Vallee places the fixed buyback rate for XRP between $37,500 and $50,000 per token, based on the global wealth and XRP’s 100 billion token supply.
It is worth noting that this theory remains entirely speculative and discussions surrounding it have picked up again following a recent Vallee interview. According to an XRP influencer, Crypto Eri, Vallee, and a “confidential committee” were working on the proposal, and if they managed to broker the deal, they would receive a share of $100,000,000.
Deaton has made it clear that he is not involved with the XRP buyback proposal and will not accept any compensation for his efforts. The proposal remains speculative, and its validity remains to be seen.
Ripple Vs SEC: Deaton Says Judge Torres Could Deny Summary Judgment
The post Ripple Vs SEC: Deaton Says Judge Torres Could Deny Summary Judgment appeared first on Coinpedia Fintech News
According to John E. Deaton, a crypto lawyer, there is a possibility that Judge Analisa Torres in the Ripple-SEC lawsuit may declare a real dispute of material facts regarding the existence of a common operation in the case. Deaton noted that the SEC’s inconsistent position on what constitutes the common enterprise may contribute to this outcome.
He also highlighted the neglected possibility that Judge Torres may reject both requests for summary judgment and present the case to a jury.
Deaton stated that it is challenging to make predictions until they have an opportunity to review all relevant facts and evidence pertaining to Rule 56.
According to Deaton, the SEC argues that XRP satisfies the second and third prongs of the Howey test legally. However, it’s up to the SEC to provide evidence and proof, which it has failed to do for the second prong and for going transaction by transaction.
Deaton stated, “This is why I’m confident the SEC won’t be granted summary judgment as requested. I could see the judge denying it and letting the jury decide some issues.”
The outcome of the legal battle between Ripple and the SEC is still uncertain, but the stakes have never been higher. Both parties are seeking to protect their interests as a dispute arises over sealing some records in the lawsuit.
Deaton Says He Wants to Testify About The Way SEC Handles Crypto
Famous crypto attorney and crypto advocate John Deaton continues to criticize the United States Securities and Exchange Commission (SEC) for the way it treats crypto and crypto businesses.
Deaton Wants to Testify
Deaton says he is willing to testify on the stand about all that he has learned surrounding the way Gary Gensler’s SEC handles anything concerning cryptocurrencies.
In addition, the crypto lawyer said that the SEC attorneys threatened to bankrupt American startup LBRY before launching a lawsuit against it, and then really did so after filing the case, despite the fact that the case did not include fraud or misrepresentation.
Last year, the SEC filed a lawsuit against LBRY for selling securities without first registering them. The Chief Executive Officer of LBRY, Jeremy Kauffman, said that the company had groveled in front of the SEC and volunteered to make any type of modifications. They provided an offer to make modifications concerning Ethereum and Bitcoin, both of which are designated as not being securities.
Kauffman told Deaton:
“I honestly don’t care about arguing the penalties. I mean, the SEC has won. LBRY is almost certainly dead. The SEC’s objective of bankrupting us through the process, which they threatened privately three years ago, they succeeded.”
In addition, during the hearing, Kauffman pleaded for clarity for the people who utilize the platform as well as transparency surrounding the transactions that take place on the secondary market. According to Deaton, an investigation into the situation is scheduled to take place on January 30.
Keep in mind that the SEC has already conceded on the record that many LBC token holders, if not the vast majority, did not see LBRY’s token as an investment and utilized the tokens for personal consumption rather than as a means to generate a financial gain.
John Deaton Predicts the Fate of Bitcoin (BTC), Ethereum (ETH) & XRP After 5 Years
It appears that cryptocurrencies are recovering from a phase of collapse in the industry, which was caused by FTX and Alameda. On significant spot exchange platforms, Bitcoin (BTC) briefly jumped to $23,330 on January 21, 2023, reaching heights not seen since August 19, 2022 and hitting new five-month highs.
John E Deaton recently tweeted that he believes that Bitcoin (BTC), Ethereum (ETH), and the XRP token will still be standing in five years’ time. Let’s explore the meaning behind this statement.
Future Outlook For BTC, ETH, and XRP
Blockchain enthusiast and founder of CryptoLaw John Deaton predicts that XRP (XRP), Bitcoin (BTC), and Ethereum (ETH) will all still be standing in five years.
Returning to a forecast he made in August of last year, John E Deaton referenced research by the Head of Assets at Zurich-based Sygnum Bank that suggested three digital assets of the future: Bitcoin as a store of value, Ethereum for infrastructure, and XRP for payments. Deaton maintains his projection because, except for the ongoing Ripple litigation, nothing has changed for XRP since 2020, when the prediction was made.
XRP Remains Resilient
The SEC filed a lawsuit against Ripple Labs and two of its officials in December 2020, stating that $1.3 billion in XRP sales constituted unregistered securities. The price of XRP plunged significantly to roughly 20 cents shortly after the lawsuit was filed. Despite this, and the subsequent removal from certain exchanges’ lists, XRP has maintained its position as one of the top 10 cryptocurrencies by market capitalization.
This demonstrates the resilience and the value proposition of XRP, which remains unaffected by external factors. XRP has remained one of the top 10 cryptocurrencies for the past ten years. Since its debut in June 2012, the XRP Ledger platform has been functioning seamlessly.
Between the close of 2017 and the start of 2018, XRP saw a tremendous rise, surging by thousands of percent and briefly overtaking Ethereum as the second-largest cryptocurrency.
Community Reacts
The crypto community paid close attention to this prediction made by Deaton. Many of them agree with the prediction, while others agree only partially. Some have even gone so far as to predict that Ethereum (ETH) won’t last very long. Some have additionally contributed to the list Deaton has stated.
Ripple Vs SEC: Judge Torres Holds the Key to Ripple’s Future: Deaton Claims “Outright Victory” in Court Battle
After years of litigation between Ripple (XRP) and the SEC, the judge’s closing ruling could be the final stage. There have been numerous theories and predictions made in relation to this lawsuit. The majority of individuals predict a settlement, while others anticipate a judge’s ruling.
If Ripple wins their lawsuit, it will help to strengthen XRP’s legality in the US market, which will enhance its price. It is also advantageous to the entire crypto sector since it provides clarity and confidence in cryptocurrency. The U.S. Commodity Futures Trading Commission (CFTC), the SEC, and any other financial compliance organizations must all be fully aware of their responsibilities and regulatory obligations.
However, if XRP loses, it could have serious consequences for XRP, its investors, and the cryptocurrency industry as a whole. The SEC would have the power to fine Ripple Labs and order the business to register XRP as a security.
The Community Speculates
A crypto enthusiast by the name @JayVTheGreat has claimed on Twitter that Ripple is most likely going to lose in its lawsuit against SEC. The user had doubts about how Ripple would conduct its transactions. Another reason cited is that Ripple has failed to make a compelling case for anything but the blue sky laws on whether an actual contract is needed or not. He went on to suggest that the Hinman emails are Ripple’s last hope because chairman Gary Gensler refuses to budge.
In response, John Deaton, a well-known blockchain attorney and the founder of CryptoLaws, intervened and brought smiles to the faces of the XRP community by outlining how Judge Analisa Torres might award Ripple an outright win. Deaton said in a thread on Twitter yesterday that he does not think Judge Torres agrees with the Blue Sky position, but he thinks Ripple might prevail in the SEC in the protracted legal dispute that has lasted for more than two years.
SEC Receives Backlash
The Securities and Exchange Commission was criticized by FOX Business senior correspondent Charles Gasparino for mishandling its regulatory agenda by prosecuting Ripple rather than the bankrupt crypto exchange FTX. The regulator charged Ripple, he continued, despite the fact that it is obvious that bitcoin exchanges are typically the source of major fraud.
Deaton continues to back Ripple while criticizing the SEC. For the longest period, he has been true to his prediction. He contends that during the three meetings they had, the SEC ought to have disclosed to Ripple officials that XRP is a security. The blockchain attorney thinks that as a result, the jury will have no trouble ruling against the SEC in this case.
SEC Under Fire: FOX’s Gasparino Accuses Agency of Mishandling Ripple Case, Deaton Responds
The SEC filed a lawsuit against Ripple Labs Inc., the firm behind the XRP cryptocurrency, in December 2020, saying that the company engaged in an unregistered securities offering of XRP for $1.38 billion. The case is still ongoing, and the conclusion could have far-reaching consequences for the XRP cryptocurrency and the broader crypto sector.
Moreover, by the end of 2022, FTX collapsed and filed for bankruptcy. The FTX collapse was not the result of bad management or oversight, but of deliberate fraud. Another description of the alleged crimes is that they are “one of the biggest financial frauds in American history.”
Could the FTX collapse and people losing millions be prevented if the SEC had focused on the right people? Let’s see
Gasparino Criticizes SEC’s Judgment
Charles Gasparino is an American journalist, blogger, and radio host. On the Fox Business Network, he participates on panels frequently. In a recent tweet, he criticized the SEC’s judgment to go after crypto companies.
He has revealed how Sam Bankman-Fried, the founder of FTX, had two meetings with the SEC. He continues by saying that the SEC botched its regulatory strategy by going after Ripple over unregistered XRP when there were significant concerns about potential fraud with exchanges.
In response to this tweet, John E Deaton, the CryptoLaw founder has stated that it’s not just Ripple that has become a target of SEC’s poor regulatory agenda. The SEC sued LBRY, a small company in New Hampshire in another non-fraud case over the LBC token. Then there’s dragonchain whose DRGN token is governed by the Ethereum Blockchain and also with respect to Kim Kardashian. Pointing out the incompetence and failure of the SEC Chairman, Gary Gensler.
The SEC brought an enforcement action against LBRY in March 2021, claiming that LBRY had offered and sold LBC as an unregistered security in violation of Sections 5(a) and 5(c) of the Securities Act.
Further, The Securities Exchange Commission pursued charges against blockchain-company Dragonchain, alleging that the 2017 ICO and subsequent offers and sales of their DRGN token, which raised over $16.5 million in proceeds, were illegal sales of unregistered securities.
The Securities and Exchange Commission in October 2022, announced charges against Kim Kardashian for touting on social media a crypto asset security offered and sold by EthereumMax without disclosing the payment she received for the promotion.
Community Reaction to this
The majority of the community believes that if SEC had focused its attention on potential fraud by FTX and SBF, it could have prevented severe losses suffered by the FTX collapse.
The majority agrees with Charles Gasparino and John E Deaton and has expressed their disappointment with SEC and Gary Gensler.
Ripple Will Eventually Win Against The SEC: Atty. John Deaton
Popular blockchain lawyer and founder of crypto-laws.us, John E. Deaton, has made strong statements regarding the ongoing lawsuit between Ripple and the Securities and Exchange Commission (SEC) on the sale of XRP.
In response to a speech by Ripple CEO Brad Garlinghouse, who blamed the SEC for classifying Ethereum as a non-security and Ripple as a security, Deaton stated that the SEC will not be granted summary judgment on whether Ripple executives engaged in illegal XRP sales.
Deaton argues that the SEC should have informed Ripple executives that XRP is a security during the three meetings they had. As a result, the blockchain lawyer believes that the jury will have an easy time deciding against the SEC on this matter.
It is important to note that a summary judgment is a decision made by the court based on evidence and statements presented in the legal pleadings without a full trial. When challenged in the comment section that Ripple should have taken advice from its legal team on whether XRP is a security or not, Deaton argued that in that case, the SEC should not have met with crypto executives, including the founders of SBF and ETH.
“According to your logic, the SEC should never have meetings with w/companies at all. Why did the SEC meet 3X with SBFraud? Why did it meet ETH founders 4-6X in 5 months? Why did the SEC agree to meet 3 times w/Garlinghouse and Ripple? The point is that a jury would hear the evidence,” Deaton argued.
Previously, Deaton noted that the SEC lawsuit ought to have classified XRP as security or non-security before 2018.
Moreover, the SEC allowed publicly traded companies Coinbase Global and MoneyGram to sell XRP to investors. As such, Hinman ought to have classified XRP as a non-security together with ETH in his speech according to Deaton.
Ripple Vs SEC: John Deaton Calls the SEC Out For Misusing the Howey’s Test
As the Ripple v. SEC case continues to unfold, the crypto lawyer and XRP fan John Deaton have accused the Securities and Exchange Commission of abusing Howey’s test in its lawsuit against Ripple, the company that issues XRP.
An asset’s eligibility as an investment contract, and hence its subjectivity to federal security regulations, is established via the Howey test.
Deaton pointed out the fact that the regulating body asserts that XRP itself was, is, and always will be a security, but the SEC’s Howey argument has gotten so stretched out that it is genuinely indefinable, either in space or in time.
According to Deaton, this is not how a Howey analysis is conducted, and it most certainly does not render a token itself always a security regardless of the context in which it is used.
The attorney states that the SEC also contends that XRP itself embodies all of the promises, inducements, and attempts put in by Ripple from 2013 up to the current day. This indicates that the SEC’s position is that XRP itself fits the criteria of both the second and the third prongs of the Howey test.
Deaton continued by saying that those who are claiming that the SEC will undoubtedly prevail and that XRP is doomed are exaggerating the SEC’s prospects. According to him, the claims made by the SEC go beyond what is reasonable.
SEC Doesn’t Have Enough Evidence Against Ripple
Recall that the SEC asserts that Ripple was selling its XRP tokens without first registering the token with the relevant authorities and that the XRP tokens themselves are securities.
Meanwhile, the research conducted by asset manager CoinShares that a significant number of investors are convinced that the SEC does not possess any legitimate evidence to substantiate its assertions.
As Deaton also predicted, the two-year legal fight between Ripple and the SEC wouldn’t end until Judge Analisa Torres made a judgment in 2023. The crypto lawyer also took issue with Gensler’s claim that ETH tokens on the Ethereum network may be classified as security contracts if the Howey test were applied.
John Deaton Shares Prediction for Ripple Vs SEC Case in 2023
John Deaton, a well-known cryptocurrency lawyer, has turned to Twitter to provide his forecasts for the year 2023.
Deaton’s Predictions for Ripple-SEC Case
Among Deaton’s predictions, the first one is that a settlement to the Ripple case will not be reached until after we hear from Judge Torres. In the case that Ripple is being sued over, the attorney has also presented an argument that is in opposition to the SEC’s assertion.
The regulatory body claims that the firm is dependent on XRP sales to finance its operations and capital expenditures, which is evidence that Ripple and XRP are both belonging to the same enterprise and that the cryptocurrency is a security.
This assertion is further supported by the fact that Ripple allegedly gave cryptocurrency exchanges financial incentives in return for listing XRP. Both pieces of evidence, according to Deaton, are the SEC’s most compelling pieces of evidence; yet, all of this has left him wondering what exactly constitutes a common operation.
Deaton argues that in order for a court to accept the claim that Ripple planned to sell XRP and establish a secondary market, they would have to conclude that the whole XRP ecosystem, such as the exchanges and all of the holders, is a joint company.
Deaton’s Other Predictions
If Ripple’s SEC complaint is dismissed and XRP is classified as a security, the SEC may decide to launch an enforcement initiative to control the cryptocurrency. The XRP community anticipates a favorable ruling from Judge Torres.
Deaton further claims that the SEC will suit more than one exchange for selling securities without proper registration. The sued exchanges are called Gemini and Genesis.
Deaton then goes on to suggest that he believes inquiries into the interactions between disgraced crypto public figure Sam Bankman Fried and will reveal a lot of shady goings-on.
The attorney concludes that Gary Gensler will leave before the year is up. I find these predictions interesting, and I look forward to seeing which ones come true.
Will SEC Sue Binance.US? Here’s What John Deaton Has To Say
In the early hours today, the Securities and Exchange Commission (SEC) filed a limited objection to the acquisition between Binance and Voyager. As per the SEC, the purchase agreement lacks the necessary information about Binance’s ability to purchase Voyager Digital along with its future plans. The SEC also asked Voyager Digital to give detailed information on what are its plans if the transfer of the agreed $1.02 billion by Binance fails.
Now, the attorney John Deaton claims that the US Securities and Exchange Commission (SEC) may further file a legal action against Binance.US which is considered to be one of the largest crypto exchanges by trading volume.
SEC To Sue Binance.US?
John Deaton is currently acting as Amicus Curiae, the court’s friend in support of Ripple in the SEC vs Ripple case. After the SEC filed a limited objection in the Binance-Voyager acquisition today, Deaton took to Twitter claiming that this could be a sign of a future lawsuit.
Earlier in July 2022, John Deaton had stated in an interview with Fox Business that the SEC will soon sue top exchanges like Coinbase or Binance in the United States. He had also said that the SEC’s lawsuit will be a part of its crypto enforcement efforts.
Ripple VS SEC Lawsuit
Furthermore, John Deaton has also predicted that there won’t be any out-of-court settlement in the SEC vs Ripple lawsuit as he expects the case will see a court ruling.
Last month, the crypto exchange Binance announced its intention to acquire bankrupt Voyager digital assets for $1.022 billion. This offer included the fair market value of Voyager’s crypto portfolio as well as $20 million of incremental value. The deal was set to close on or before April 18, 2023.
However, Binance.US lawyers have now come to terms to submit a revised purchase agreement with all the required details included before the next hearing.
SBF’s Not-Guilty Plea Shall Worsen Matters For Him: Attorney John E. Deaton Speaks Out
Rumours about Sam Bankman-Fried (SBF) pleading guilty circulated before the news was confirmed.
“SBF Is Toast”: Deaton
During a FOX Business interview on January 3, Crypto Attorney John E. Deaton stated that SBF is “toast,” implying that he will face severe consequences for his alleged wrongdoing, which SBF has denied.
Deaton pointed out that SBF has lived extravagantly since his extradition from the Bahamas, adding that pleading not guilty has made matters worse for him.
Deaton trusts that the judicial system will continue to investigate and hold SBF accountable for his crimes, as his allies Caroline Ellison and Gary Wang have already testified to the claims against them and there is evidence to support them.
SBF’s Trial Date
The disgraced public figure is being charged with conspiracy to conduct wire fraud, conspiracy to commit money laundering, and conspiracy to abuse consumer cash.
The SEC and the CFTC are also suing him on identical grounds. If found guilty of all accusations, SBF could spend up to 115 years in prison. His trial has been scheduled for October 2nd, 2023.
At a hearing on January 4, the court granted the requests of SBF’s counsel to maintain the confidentiality of the names and addresses of the two unknown signees to SBF’s record $250 million bail bond.
It is important to note that SBF was allowed to go free on his own recognizance after posting a contentious $250 million bail bond that was guaranteed by the California mansion owned by his parents and assets from two unknown signers.
Ripple Vs SEC: Attorney John Deaton Predicts Potential Outcome
The Ripple vs SEC lawsuit is one of the most closely watched cases in the crypto space as it awaits a resolution.
The US Securities and Exchange Commission (SEC) filed the case against Ripple in 2021, and since then, Ripple and its legal team have strongly defended the company in court. As we enter 2023, the case is entering its second year and is becoming even more exciting as the summary judgment approaches.
In the latest development, attorney John Deaton has stated that the chances for an out-of-court settlement in the Ripple vs SEC case are nearly zero, indicating that the lawsuit will proceed to a court hearing.
Summary Judgment Approaching?
Attorney John Deaton recently posted a Twitter poll asking his followers if they believed the Ripple vs SEC case would be settled in 2023. According to the data, nearly 59% of voters believed that a settlement would occur in 2023.
However, Deaton himself stated that he is in favor of the minority who believe the case will move towards summary judgment. Deaton provided three reasons for this stance.
Firstly, he initially thought that SEC’s refusal to submit Hinman documents might lead to a settlement, but now believes that the SEC may submit these documents as they do not mention XRP.
Secondly, Deaton believes that SEC Chair Gary Gensler is prepared to accept an unfavorable outcome in the lawsuit as the Commodities Futures Trading Commission is pushing for crypto regulations.
Finally, Deaton argues that the collapse of FTX has strengthened Gensler’s stance against crypto and believes Gensler will likely file a lawsuit against FTX as well.
However, attorney James K. Filan, who has been following the case, stated that if the Ripple vs SEC lawsuit does not see an out-of-court settlement, a ruling will occur on or before March 31st.
Ripple VS SEC : SEC is Unlikely To Win the Lawsuit Says Attorney John E Deaton
Attorney John E Deaton explained in a long tweet if Ripple executives were reckless enough in not knowing XRP was a security. The thread was in response to a tweet by Sasha Hodder, another attorney. Hodder disclosed that Chris Larsen and Brad Garlinghouse will owe the SEC $450 million and $150 million, respectively, if the Ripple executives lose their legal battle with the SEC.
Having made his claims about the SEC case, Deaton brought in some facts and said that the SEC enforcement lawyers were allowed to own and trade #XRP until March 2019. He then said that in 2014, USGAO classified XRP as a virtual currency utilized in a decentralized payment system called Ripple. Deaton also added that in 2019, the FSOC Annual Report highlighted XRP, along with BTC, ETH, and LTC as virtual currencies gaining in market cap.
“In 2013 – yes 7 years before the lawsuit – @chrislarsensf gave a presentation to the SEC, CFTC, Federal Reserve & Treasury Department about Ripple’s plans to disrupt the global payment system by utilizing #XRP (SEVEN YEARS BEFORE THE LAWSUIT).”
In June 2018, SEC enforcement lawyers published a memo on #XRP that examined whether it met the Howey test. Because these lawyers are Howey experts, they concluded that neither enforcement nor a cease-and-desist order should be issued, he said.
Deaton then stated with certainty that Garlinghouse and Larsen stand a better chance than the SEC of obtaining summary judgment in the ongoing case. He continued by saying that suing the two executives, Jay Calyton, Hinman, and Marc Berger did Ripple a huge job. These executives are not accused of any fraud, misrepresentation, or omission. The SEC typically wouldn’t sue individual executives in a non-fraud case.
“This was personal and it was a stupid decision by the SEC. In March of 2021, I tweeted out that suing the 2 executives would prove to be a dumb decision because it placed a higher burden on the SEC to prove. Let’s be honest, this was hardball intimidation tactics by the SEC.”
He also called the SEC a ‘bully’ and said that If they didn’t charge the two executives with aiding and abetting, the Hinman emails may never have been ordered to be turned over.
This Move by John Deaton Could Support XRP Holders
Attorney John Deaton, the creator of Crypto Law, declared that if the SEC had brought legal action against Ethereum or any of its leaders, including Vitalik Buterin and Joseph Lubin, he would have backed the cryptocurrency in the same way that he has for Ripple.
According to Deaton, He has kept holding ETH because he anticipates that those who have criticized him thus far would write off his efforts on behalf of the Ripple community as being the work of an enraged XRP holder.
He add that he has continually held more ETH than XRP because he anticipates that detractors will write off his current efforts on behalf of the Ripple community as being the work of an irate XRP holder.
Lawyer Deaton has been a spearhead in the Ripple case
It is noteworthy that Ripple v. SEC lawyer Deaton has been at the forefront of the case. The creator of Crypto Law is presently defending more than 72,000 XRP investors in a class action lawsuit against the Securities and Exchange Commission for suffering significant losses.
Deaton made his statement shortly after the inventor of Cardano called the allegations made by XRP holders regarding former SEC employees a “grand conspiracy.” Following a recent statement, Charles Hoskinson is now facing the full fury of the XRP community. Crypto Eri, a well-known XRP enthusiast, says she is disturbed by Charles’s remarks.
XRP is presently trading at $0.5159, a price increase of 5.16%. According to the data from coinmarketcap, on the last day, the price of XRP fluctuated between $0.4855 and $0.5279, with a market cap of $51,597,452,683 and $2,935,009,906 in trading volume.
The MACD line is currently crossing over the signal line, and the RSI is currently at 66, indicating an overbought region. Bullish momentum is revealed by all the indicators.
