According to the latest update provided by James K. Filan in the ongoing Ripple SEC lawsuit, "Investment Banker Declarant" has filed a response to Ripple's opposition to an earlier motion to shield from public view his name, position and employer.
The "investment banker declarant," an employee of an SEC-regulated entity, submitted his declaration to the SEC "voluntarily."
However, in a subtle twist, the arguments made by legal representatives of "the investment banker declarant" point out something striking.
The document attached to James K. Filan's tweet reads, "The investment banker declarant works at an SEC-registered broker-dealer and, as such, was not in a position to decline such a request from the SEC — his firm's primary regulator — for a declaration. Had Investment banker declarant declined to provide a statement, the SEC's alternative was to compel his testimony to authenticate the document at issue. It is self-evident that where a witness's only options are to provide a declaration or to testify, there is no truly voluntary choice to be made."
Fred Rispoli, an attorney and participant in the Ripple lawsuit who filed a motion to appear pro hac vice on behalf of Reaper Financial, commented under Filan's tweet:
The legal costs are likely being paid by our mystery declarant's employer, as Sidley is a major big law firm that is very expensive. Response is interesting in that it throws shade at SEC in the most gentle way possible...company caught between a rock and hard place here.
Ripple CEO slams SEC's conduct as "embarrassing"
Recently, Ripple CEO Brad Garlinghouse, while expressing optimism about getting a ruling on the lawsuit soon — possibly in the first half of this year — slammed the SEC's lawsuit, saying the conduct of the agency so far had been "embarrassing."
After Ripple got ahold of the much-sought-after documents of former SEC employee William Hinman, the Ripple CEO stated that the SEC's "shamefulness" will be shocking to those who follow the case.
"The SEC wants you to think that it cares about disclosure, transparency, and clarity. Don't believe them," Garlinghouse said.