Judge Torres’ local rules requires a pre-motion letter before you file a formal motion. There are a few exceptions that allow you to skip the pre-motion letter and directly file the formal motion. One exception is when you believe that a delay might impede
your interests. I filed the formal motion arguing a that a delay might impede our interests.
Judge Torres dismissed the motion to intervene because she clearly disagreed that a delay would impede our interests. But she dismissed it WITHOUT prejudice and instructed me to refile
it in accordance with her local rules - meaning I needed to file the pre-motion letter first and let @Ripple and @SEC_News respond to the letter. The media and alleged legal experts rushed to say that our motion was quickly denied and we were
going to miss the deadline to add new parties. Clearly, these people have NEVER tried a real case. The deadline to add new parties is a deadline imposed on the existing parties NOT potential intervenors. In my pre-motion letter I cite a case from the SDNY that allowed
intervention a year after the filing of the 2nd amended complaint. There is a case in Pa federal court that allowed intervention 7 years after the case was filed. What’s ironic is that I referenced the new parties deadline only to show the Court that our motion to intervene was
SO timely that we met a deadline in the case that didn’t
even apply to us!!
Likewise, in my pre-motion letter filed today I referenced that deadline and say “our motion is so timely that we practically met a deadline that doesn’t apply to us.”
But that type of legal analysis
is a bit too deep for some folks. I give props however to @attorneyjeremy because he did attempt to limit the fud being spread.
Ask yourself this: if the judge dismissed the case and we had no chance why would the docket look like it does below?
Notice above that the SEC made a filing error with Complaint as the very first entry on 12-22-20. Sometimes we make technical and judgment errors.
In life we WIN and we LEARN. The judge denied my pro hac motion because my certificates of good standing from each bar were not
attached (due to delays, etc). I’ve been admitted pro hac vice many times and in a total of 10 different states but it was always in state courts, not federal courts. In the past, state judges have not denied the pro hac and held a ruling in abeyance until receiving the
certificates of good standing. The SDNY clerks immediately denied it because of the error in not attaching the certificates. Thus, we learned that the SDNY and Judge Torres are very much rule oriented. I respect that. The rules are they for a reason and no exceptions will be made
even for out of state lawyers who do not practice routinely in the SDNY. Lesson learned.
I spent more time on the 4 page pre-motion letter than I have on a 40 page memo. Her rules say that normally it shouldn’t be more than 4 pages. I noticed that the Ripple and the SEC
pre-motion letters didn’t have one word on the 5th page. I followed the way that a Ripple lawyer did one letter so I had the footnote at 10 font and the rest of the letter at 12 font. I was done and ready to file, but said I better read those local rules one more time. And even
though the SDNY rules state footnotes should be 10 font, Judge Torres’ rules state that she wants the footnotes to be 12 font along with the rest of the letter.
Once I changed the footnote to 12 font my pre-motion letter was now two lines too long on the 5th page. 😭
The point is I didn’t lose before when my motions were denied, I learned something.
And I hope all of us also learned that just because something is said in an article doesn’t make it true. And just because a lawyer (including me) says something it isn’t one bit better or more
accurate than your statement or opinion.
I make no prediction about our chances with the motion to intervene. I believe we meet the standard. But that doesn’t mean we will be successful in our intervention. All we can do is fight back until we can’t.
• • •
Missing some Tweet in this thread? You can try to
force a refresh
First, I already believed that #XRPHolders meet the legal standard to successfully intervene. If you objectively read the 4 page pre-motion
letter (or formal motion) it’s hard to deny that we meet the 4 factors for intervention (even the haters should struggle to say we don’t). That doesn’t mean we will win the motion. The SEC will likely say that we aren’t necessary in the case because its not claiming that the #XRP
that we hold are securities and will therefore try its best to keep us out of the case.
Based on what was said, by both sides, at this hearing, however, helps prove that #XRPHolders’ interests need to be represented during the prosecution of the case.
In the Pre-motion Letter to Judge Torres we state:
Today’s XRP is a Government Recognized Form of Currency and is Utilized
by XRP Holders Completely Independent of Ripple or its Executives
If allowed to intervene, XRP Holders will demonstrate to the Court that XRP is used
around the world and in the United States as currency. Six years ago, the Financial Crimes
Enforcement Network (“FinCEN”) entered into an agreement with Ripple that XRP would be considered virtual currency and its use would be registered exclusively with FinCEN, not the SEC.
Afterwards, foreign nations started agreeing with the U.S. Government’s 2015 currency
classification of XRP, and Japan, Switzerland, the U.K. and the UAE all declared XRP as non-
securities. Since that 2015 designation as virtual currency, the use cases of XRP have exploded.
I’m sure dozens of critics and “legal experts” will comment on our motion to intervene in @SEC_Enforcement v. @Ripple and try to tear it down.
The Writ of Mandamus was always a long shot and could even be legally described as a Hail Mary. That’s not news.
Does that mean we don’t fight and try to win? Do we say to ourselves “the game’s over, I give up?” Or, do we say “I won’t quit until this game is over and throw the Hail Mary”?
Life and people will beat you down if you allow it. Trust me, I’ve been knocked down hard by life.
But there’s only one option: get up and fight back. I’ve always said that if you put me in a ring with @MikeTyson three things will definitely happen: 1) I will step forward; 2) I will get knocked the f** out; and 3) IF I wake up, on wobbly legs, I will try to step forward again.
Maybe they can find a few extravagant purchases and then Leak it to the press so people talk about that nonsense instead of the SEC acting like Big Brother. If they can paint Brad and Chris in a bad light then people might believe they deserve it all.
CRYPTOCURRENCY AND DIGITAL ASSET HOLDERS PLEASE BE ADVISED
Today, I am launching CryptoLaw (crypto-law.us) The new site is filled with information, news and analysis on key U.S. legal and regulatory developments for investors & digital asset holders.
Many of you
have asked me if there is anything that you can do to support my efforts. First and foremost, I truly appreciate everyone of you that have made such generous offers to assist me.
If you could please check out CryptoLaw above and follow us on Twitter at @CryptoLawUS it would
make a significant contribution in generating attention to our cause. We launched today because of the confirmation hearing of Gary Gensler tomorrow. There is very little communication between the Digital Asset Industry and the law-makers that govern the industry.