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Ruling on Security Class Action Lawsuit


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Reference: EOS was security, but EOS paid fine and it is still traded. https://coinrivet.com/ja/eos-creator-block-one-pays-24-million-fine-over-unregistered-ico/ https://www.sec.gov/new

It wasn't dismissed, the judged is going to take time to think on the ruling, read the entire twitter thread.

3-8 weeks

Reference:

EOS was security, but EOS paid fine and it is still traded.

https://coinrivet.com/ja/eos-creator-block-one-pays-24-million-fine-over-unregistered-ico/

https://www.sec.gov/news/press-release/2019-202

Do we still need to be very afraid of securities issues?

I think I don't have to be afraid excessively.

 

 

Edited by jabit
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2 hours ago, WhtSno said:

Well information is shifting some.

How so?

3 hours ago, WhtSno said:

I have access to the Federal Court system.

4 hours ago, WhtSno said:

Case was dismissed, docs take time to file and update.

Are you saying the access you have first said it was dismissed then changed?

 

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20 hours ago, jabit said:

Reference:

EOS was security, but EOS paid fine and it is still traded.

https://coinrivet.com/ja/eos-creator-block-one-pays-24-million-fine-over-unregistered-ico/

https://www.sec.gov/news/press-release/2019-202

Do we still need to be very afraid of securities issues?

I think I don't have to be afraid excessively.

 

 

Matters in the law are not always cut and dry.

I can see an interesting set of scenarios which flow from the ICO similarities of EOS and Ripple.

These are simply my personal views and are not intended as legal advice. 

The administrative fine EOS paid was to the SEC, which is the agency of the US Gov't having administrative jurisdiction over securities offers (ICO's) like  EOS issued. The SEC likewise can bring a party who breaches the securities  law into court on either civil or criminal charges, courts are  a separate branch of US Gov't apart from executive agencies like the SEC. . EOS avoided all the court action by entering into a consent agreement with the SEC. But no court proceeding determined anything pertaining to EOS, and neither were there any private individuals involved.

EOS is still vulnerable to a securities cause of action from anyone damaged by EOS ICO and is amenable to suit on either state or federal causes of action. The SEC administrative action against EOS does not operate to preclude the issue in Court as to any third party private cause of action,  nor does it collaterally estop an assertion of a claim based upon a private right being infringed under the securities laws.  Both the US Gov't and private individuals can separately  avail themselves of the protection provided by the securities laws. Private individuals can likewise assert state claims for violation of state securities laws, separate and apart form any federally based claims. 

 The SEC has not brought any action against Ripple administratively or judicially. The action brought against Ripple is by private individuals seeking a class action damages award for breach of state and federal security laws. Likewise, if there are some individuals  who were harmed by EOS securities offering, then they could sue EOS in court just as has been done against Ripple.  The fact that EOS has a consent agreement with the SEC could certainly be used against EOS in any subsequent individual party litigation initiated in civil court.  The SEC along with the US Dep't of Justice could likewise initiate a criminal proceeding against Ripple separate from the private cause of action. 

The interesting aspect of all this is that if Ripple were to destroy all remaining XRP and stop issuing XRP to fund its platform and capitalize its operation from the sale of its  speculative asset XRP, it would likely be immune from future  actions based upon breaching securities laws going forward. But that would not immunize Ripple from any liability for damages incurred up to the date of the XRP destruction. 

Ripple has enough liquidity in XRP to perform its announced use case. It opens itself to securities liability by its continued sale of XRP.

It would surely help the XRP hodler's value and it would be best if Ripple destroyed all remaining XRP.  But they are  likely too greedy or stupid to do that. I think ultimately Ripple could accrue some hefty liability, which could be erased by reorganization in bankruptcy if the corporation's  solvency were threatened. Of course, this would all  take a while to play out.

Edited by Sporticus
Typo and omissions
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2 hours ago, Sporticus said:

Matters in the law are not always cut and dry.

I can see an interesting set of scenarios which flow from the ICO similarities of EOS and Ripple.

These are simply my personal views and are not intended as legal advice. 

The administrative fine EOS paid was to the SEC, which is the agency of the US Gov't having administrative jurisdiction over securities offers (ICO's) like  EOS issued. The SEC likewise can bring a party who breaches the securities  law into court on either civil or criminal charges, courts are  a separate branch of US Gov't apart from executive agencies like the SEC. . EOS avoided all the court action by entering into a consent agreement with the SEC. But no court proceeding determined anything pertaining to EOS, and neither were there any private individuals involved.

EOS is still vulnerable to a securities cause of action from anyone damaged by EOS ICO and is amenable to suit on either state or federal causes of action. The SEC administrative action against EOS does not operate to preclude the issue in Court as to any third party private cause of action,  nor does it collaterally estop an assertion of a claim based upon a private right being infringed under the securities laws.  Both the US Gov't and private individuals can separately  avail themselves of the protection provided by the securities laws. Private individuals can likewise assert state claims for violation of state securities laws, separate and apart form any federally based claims. 

 The SEC has not brought any action against Ripple administratively or judicially. The action brought against Ripple is by private individuals seeking a class action damages award for breach of state and federal security laws. Likewise, if there are some individuals  who were harmed by EOS securities offering, then they could sue EOS in court just as has been done against Ripple.  The fact that EOS has a consent agreement with the SEC could certainly be used against EOS in any subsequent individual party litigation initiated in civil court.  The SEC along with the US Dep't of Justice could likewise initiate a criminal proceeding against Ripple separate from the private cause of action. 

The interesting aspect of all this is that if Ripple were to destroy all remaining XRP and stop issuing XRP to fund its platform and capitalize its operation from the sale of its  speculative asset XRP, it would likely be immune from future  actions based upon breaching securities laws going forward. But that would not immunize Ripple from any liability for damages incurred up to the date of the XRP destruction. 

Ripple has enough liquidity in XRP to perform its announced use case. It opens itself to securities liability by its continued sale of XRP.

It would surely help the XRP hodler's value and it would be best if Ripple destroyed all remaining XRP.  But they are  likely too greedy or stupid to do that. I think ultimately Ripple could accrue some hefty liability, which could be erased by reorganization in bankruptcy if the corporation's  solvency were threatened. Of course, this would all  take a while to play out.

or gift their XRP to the IMF or World Bank.

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