I have more than a few DMs from people asking whether it’s possible that if we are successful in a motion to intervene and then lose the underlying case if sanctions would be ordered against #XRPHolders.

First, there are currently 6 named proposed intervenors.
I have alleged, along with those 6 named intervenors “and all others similarly situated.”

The 17,000sh people that have signed up to join are not officially in the case. The 6 named intervenors are not yet in the case for that matter. I have informed the Court that I represent a
putative class of 12k plus (it has grown since then). If we win the motion to intervene then that doesn’t mean everyone that signed up is a defendant in the case. In order to be a defendant in the case the judge would have to certify a class (ie “class action”). Before she did
that, people would have an opportunity to choose to be in the class or not. You would have the choice.

Regarding Sanctions: sanctions are only ordered by the judge - NOT the SEC.

Unfortunately, some people are now under the impression that the SEC can punish them and issue
sanctions against them for signing up. This is NOT TRUE.

A judge would only be considering sanctions if the SEC asked for sanctions against #XRPHolders. The SEC would have to publicly ask for sanctions against the retail investors they are sworn to protect. Not sure Gensler
wants that publicity. But even if the SEC hypothetically wanted to ask for something so absurd, Only the judge could order sanctions against anyone.

Ask yourself this question: Do you really think a judge is going to order sanctions against #XRPHolders? Why?

Because we asked
to intervene to protect our interests? That would mean that in this case the judge says “yes, I agree with you and I will allow you to intervene to protect your interests” but then later turns around and issues sanctions against the same people that she agreed had a right to
intervene in the first place.

As of right now, the SEC isn’t asking for sanctions against Ripple, let alone retail holders of #XRP. The SEC is seeking the disgorgement of the gains realized by Ripple and the two executives and pay civil penalties under section 20(d) which
applies to control persons, and prohibit Ripple, Brad and Chris from offering digital asset securities in the future.

I hope this explains things for people. Please know that if you have submitted your name but now wish to be removed for any reason that is perfectly ok. Jd

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More from @JohnEDeaton1

11 Apr

I hope to be proven wrong but as I’ve said before I do not believe that @coinbase @krakenfx @binance etc. are going to re-list or un-suspend #XRP until the @SEC_Enforcement comes out and issues a no-action declaration or we get clarity from the SDNY Court.
Let me explain how the SEC Attorney misled the Court when answering Judge Netburn’s question regarding whether anyone selling #XRP would be violating Section 5 of the Securities Act.

This will also help me prepare for our brief (due in 8 days). 😥😫

Attorney Tenreiro said that
Section 4 exemptions would apply and therefore retail holders would not be in violation. Not true. If the purpose and intent is to have #XRP distributed by purchasers into a secondary market no exemption applies under Section 4, as Tenreiro suggested to Magistrate Netburn.
Read 9 tweets
9 Apr
#XRPHolders 🆚 @SEC_News Thread:

@HesterPeirce was interviewed by @ThinkingCrypto1 and said that she was trying to get people at the @SEC_News to stop thinking about the token as a security but instead on how the token was being packaged and sold.
I tweeted out, in disbelief, saying “that’s only been the law for 75 years.”

The Supreme Court in #Howey didn’t conclude that the oranges 🍊 were Securities, but it was the “scheme” and the totality of circumstances surrounding the transactions between the parties that was held
to be an investment contract. But it’s not just the #Howey case that has made it crystal clear that the token itself IS NOT a security.

#BTC, #ETH, #XRP, #Gold, #Soybeans, #copper, #coffee and any other product or commodity can be marketed, packaged, sold and distributed
Read 18 tweets
4 Apr
“Clayton’s family gets millions of dollars in annual dividends from WMB Holding”

His family got $4 million per year in dividends. To receive that much 💰 in dividends is equivalent to owning a $200 million in stocks that pay 2% in dividends.

Clayton’s wife is Gretchen Butler Clayton. The B in WMB stands for Butler. WMB owns CSC. Clayton’s father-in-law is Daniel Butler, who served as CSC’s CEO from 1975-1998. WMB and CSC share the same address.

Multiple other units of Goldman Sachs are using the same address.
Clayton’s wife was a V.P. at Goldman Sachs for 17 years when Clayton became SEC Chairman.

“There are thousands of businesses using CSC as their registered agent and using CSC’s address as their legal address.”
Read 5 tweets
4 Apr
Does China 🇨🇳 and/or Alipay have any interest related to Ripple or #XRP?

Asking for a friend.

Previously, I tweeted about Clayton and Hinman being on the SEC application for Alibaba’s IPO.

Let’s look into another Lawyer who appears on that @SEC filing document:

Leiming Chen
Leiming Chen, like Hinman, was a partner at Simpson Thacher.

Leiming Chen served in the firm’s Hong Kong office, focusing on SEC-registered offerings.

A client of Simpson Thacher is Neil Shen.

Neil Shen is founding and managing partner of Sequoia China. Image
Neil Shen put forth at the Chinese People’s Political Consultative Conference the recommendation that Hong Kong create its own stable coin, which can be used for cross-border payments between China, Japan and South Korea.

Read 4 tweets
1 Apr
An @SEC_Enforcement 🆚 @Ripple Thread:

The most important decision a prosecutor makes is at the very beginning when he decides who to charge and what to charge.

@MrFreshTime showed us the video of Clayton favoring going after the individual executives and not just the company.
I called it a bullying tactic.
When I was @on_the_chain recently and weeks ago I said charging @bgarlinghouse and @chrislarsensf would prove to be a mistake.

If the @SEC had sued only #Ripple, then it would be a strict liability case and all the @SEC would need to prove is
that #XRP was a security when #Ripple sold it. No need to prove any level of intent or state of mind. But by alleging that Brad and Chris aided and abetted Ripple in selling unregistered securities, the @SEC must prove:

“they knew or recklessly disregarded” that Ripple’s sales
Read 14 tweets
21 Mar

@SEC_Enforcement 🆚 @Ripple @bgarlinghouse and @chrislarsensf

My honest thoughts:

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.

I won’t spell it out
Read 20 tweets

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