Main navigation

Ripple's Legal Chief Unravels XRP Verdict Drama in Terra Case

Tue, 08/01/2023 - 09:33
article image
Gamza Khanzadaev
Ripple's Stuart Alderoty reveals current reality of XRP after drama in Terra case
Ripple's Legal Chief Unravels XRP Verdict Drama in Terra Case
Cover image via
Read U.TODAY on
Google News

Yesterday's courtroom developments sent shockwaves through the crypto community as Ripple's legal battle took an unexpected turn in connection with the ongoing Terraform Labs' lawsuit. In a surprising twist, the court rejected U.S. District Judge Analisa Torres' previous decision that Ripple had not violated securities laws by selling XRP.

Ripple Decision in "Big Trouble," Former SEC Official Says

While Do Kwon and Terra seemed to be the focal point, it drew attention to the Ripple and XRP saga. The SEC, currently pursuing a lawsuit against Terraform Labs and its cofounder, seized the opportunity to challenge Judge Torres' ruling in the Ripple case, indicating they may file an appeal.

Missing point

The news sparked an uproar, particularly among the XRP community and Ripple representatives. Stuart Alderoty, the crypto company's chief legal officer, was quick to clarify the situation. Without directly quoting him, Alderoty emphasized that the recent ruling in the Terra case had no impact on the established verdict that XRP was not a security. He stated that the Ripple ruling was grounded in a comprehensive factual record developed over two years, while the Terra case was just beginning, leaving room for the SEC's allegations to be initially accepted by the court.

Alderoty also pointed out that the Terra judge may have misunderstood the reasoning behind the Ripple judge's decision, specifically regarding the involvement of secondary market traders. According to the officer's statements, these traders cannot be considered investors if they lack crucial information about the parties they are transacting with.

Ripple's Lead Lawyer: Not All Roads Lead to SEC

This ongoing legal drama has raised numerous questions and stirred speculation within the crypto community. Experts and enthusiasts alike are closely monitoring the situation, as the outcome of the Terra case and the potential appeal by the SEC may have significant ramifications for the broader cryptocurrency industry.

article image
About the author

Financial analyst, trader and crypto enthusiast.

Gamza graduated with a degree in finance and credit with a specialization in securities and financial derivatives. He then also completed a master's program in banking and asset management.

He wants to have a hand in covering economic and fintech topics, as well as educate more people about cryptocurrencies and blockchain.