US Courts Deny XRP Holders To Intervene In The SEC Case

US courts deny XRP holders to start intervening in the Ripple v SEC case as the case is still stuck in limbo but let’s read more in our latest Ripple news today.

The XRP holders got a step back again as Ripple and the US SEC battle on the alleged securities case. Some of the holders earlier blamed the lawsuit caused them losses but for the courts, this wasn’t a good enough reason to let them intervene in the case. According to a court filing, US District Judge Analisa Torres denied the motion that was put forth by the XRP holders which requested the representation of themselves as third-party defenders when the case was opened. She said that the holders didn’t file a pre-motion letter which explains the reasoning behind the intended application but the holders haven’t been denied to file the pre-motion letter and re-file the motion again, so the US courts deny XRP holders a chance to intervene in the case.

I’m not going to litigate the SEC’s unproven allegations on Twitter, and as you can imagine, there are new considerations to what can / should be said publicly after the litigation process starts. However, I would like to address 5 key questions I’ve seen. 1/10

— Brad Garlinghouse (@bgarlinghouse) January 7, 2021

John Deaton, an XRP investor and the founder of Crypto law legal forum said:

 “It was denied “without prejudice” with the ability to refile in accordance with Judge Torres’ local rules. This simply means it must be refiled as a letter motion. I’m on it, please don’t get discouraged.”

He filed that the motion for protecting the substantial interests of XRP investors and there were a few points made explaining the rationale behind the intervention like, XRP holders would be heavily impacted by the disposition of the action, the holders have an interest related to the property that is the subject of the action and also, the holders are situated in a way that disposing of the action could impair their ability to protect their interests.

#XRPHOLDERS:

What Did I say about being knocked down and how we respond?

It was denied “without prejudice” with the ability to refile in accordance with Judge Torres’ local rules. This simply means it must be refiled as a letter motion. I’m on it, please don’t get discouraged. https://t.co/R54YTBn5SW

— John E Deaton (@JohnEDeaton1) March 16, 2021

The motion added that the intervention will not delay the legal proceedings of the original and the XRP holders group that will contribute to the issues in the case. The holders are the ones that have their interests not taken into consideration. For the uninitiated, the US SEC slammed the payments processor in 2020 on charges of holding unlicensed securities sale and the founding team that made profits of millions of dollars.

Garlinghouse denied the claims and stated that the charges were uncalled for in a tweet. Ripple hasn’t made any public comments regarding their legal proceedings but high-profile partners like Moneygram backed out of their partnership.