Ripple's XRP has managed to surge back to the $0.30 level after spending almost a week in the $0.28 range.
Meanwhile, a crypto-focused lawyer says that the SEC had been warned that XRP investors may potentially lose billions due to the legal suit against the blockchain giant Ripple.
XRP reclaims $0.30
After collapsing from the $0.58 level on Dec. 22, the day after the SEC officially announced its lawsuit against Ripple, XRP has been partly recovering its previous highs but then dropping again.
On Jan. 7, XRP (now in fifth place due to the speedy DOT rise) managed to recover to the $0.36 level on the wave of Bitcoin breaking above $36,000.
After that, on Jan. 10, XRP dropped from the $0.34 mark and hit $0.27.
At press time, the fifth largest cryptocurrency is changing hands at $0.3063, according to data from CoinMarketCap.
SEC was reportedly aware that XRP investors may lose billions after the lawsuit
According to John E. Deaton, a lawyer who is focused on the DLT and crypto sectors, has spread the word that former SEC chief Jay Clayton had received a letter from former SEC chairman Joseph Grundfest.
In the letter, Grundfest reportedly warned Clayton, before he filed a suit against Ripple, that XRP may potentially lose billions after trading intermediaries begin their exodus from the XRP market.
The lawyer claims that the SEC had been aware of XRP trading on more than 200 exchanges "with the SEC's full awareness and implicit permission."
The lawyer stated that there was no pressing reason that compelled immediate enforcement against Ripple and its CEOs.
Still, Jay Clayton had filed the suit despite being aware that third parties may lose billions as a result.
But Clayton and the SEC IGNORED this grave warning. Despite billions and billions of losses to innocent investors, the SEC filed the most significant SEC case in modern history.
Exchanges that have delisted XRP + Grayscale
By now, the crypto exchanges that have suspended XRP trading include Coinbase, Kraken, Binance US and Bitstamp.
Besides, the largest crypto hedge fund, Grayscale Investments, recently announced that it had shut down its XRP Trust over the SEC's legal action against Ripple.