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Ripple's Transparency Prevented SEC From Claiming Fraud: John Deaton

Wed, 08/02/2023 - 10:12
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Godfrey Benjamin
Ripple is transparent with its financial disclosures, trend John Deaton says has saved firm from probable SEC fraud allegations
Ripple's Transparency Prevented SEC From Claiming Fraud: John Deaton
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XRP holders' lawyer John Deaton has shared a very salient comment on the latest quarterly report that was published earlier by American blockchain payments firm Ripple Labs Inc. Taking to Twitter, Deaton noted that this transparency move might have saved Ripple from additional charges from the United States Securities and Exchange Commission (SEC).

SEC Bullies Ripple CEO and Chris Larsen, John Deaton Says, Here's Their Response

The pro-crypto lawyer buttressed his points noting that as a privately held company, Ripple Labs is not under any obligation to disclose its financial standing or any aspect of its internal operations. The legal behemoth said that the company's voluntary disclosure takes a major detour from other related companies, which might even disguise some of their transactions to avoid scrutiny.

In his characteristic manner, Deaton said that while the information it periodically declares has, in a way, been used against the company by the market regulator and other players in the industry, it has largely prevented an accusation of fraud that might notably offset the company's integrity.

To Deaton, the SEC could have brought on bogus fraud, misrepresentation and manipulation charges if it could. The firm's transparency is a major voluntary move that is now the company's savior at this time.

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

Highlight of Ripple report

The report that Deaton referenced is the second-quarter performance highlight in which the company revealed its total XRP holdings as well as the coin it manages in escrow.

As reported earlier, Ripple said its XRP subjected to on-ledger escrow is pegged at 41,900,000,005, while the total XRP it holds as a company at the end of the second quarter ended in June was pegged at 5,551,119,094. This figure compares to the escrow-bound XRP as of the end of the first quarter in March, which comes in at 42,800,000,013.

The report debunked key misconceptions bordering on the XRP ruling and is currently being well-applauded by the broader community.

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About the author

Godfrey Benjamin is an experienced crypto journalist whose main goal is to educate everyone around him about the prospects of Web 3.0. His love for crypto was birthed when, as a former banker, he discovered the obvious advantages of decentralized money over traditional payments. With his vast experience covering various aspects of Web3, Godfrey's articles has been featured on, Cryptonews and Coingape, among others.