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Ripple's Top Lawyer Questions Validity of SEC's Stoner Cats Settlement

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Thu, 14/09/2023 - 5:33
Ripple's Top Lawyer Questions Validity of SEC's Stoner Cats Settlement
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Stuart Alderoty, Ripple's top lawyer, and David "JoelKatz" Schwartz, Ripple's CTO, have voiced skepticism over the U.S. Securities and Exchange Commission's (SEC) recent settlement with Stoner Cats 2 LLC. 

The SEC has accused Stoner Cats of conducting an offering of non-fungible tokens (NFTs) without proper registration. The funds raised were purportedly intended for the production of an animated web series.

Ripple's top brass takes aim at the SEC   

Stuart Alderoty took to Twitter to question the binding nature of the SEC's recent settlement with Stoner Cats, describing such a resolution as "binding on no one" and potentially just a "PR stunt." He argued that when seriously challenged in court, the SEC often loses its cases. 

Similarly, David Schwartz chimed in, noting that settling with the SEC for a few million dollars now may only lead to a pyrrhic victory later, costing double-digit millions. 

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His statement implies that such settlements shouldn't necessarily be seen as a win for any party involved.

Cats out of the bag

Stoner Cats 2 LLC quickly sold thousands of NFTs at a significant price each, accumulating a substantial sum of money. 

Actress Mila Kunis, along with other high-profile figures like Ashton Kutcher and Ethereum founder Vitalik Buterin, were involved in the controversial project. 

The SEC contends that buyers were led to believe their NFTs could appreciate in value, thus qualifying them as securities. The NFT project has agreed to fork out a $1 million fine.

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