Ex-SEC Director Says XRP Investors’ Civil Lawsuit Against SEC Is “a Losing Case”

“Former SEC director Marc Fagel says XRP investors’ lawsuit against SEC will fail under current law. It is common knowledge that many XRP investors suffered huge losses due to the SEC’s lawsuit against Ripple. Recall that, in December 2020; the commission charged Ripple with offering unregistered securities – XRP. The lawsuit caused the value of XRP to plunge, with investors suffering huge financial losses. Notably, XRP investors are yet to recover from the incident. Consequently, they have discussed the likelihood of filing a civil suit against the SEC.

In a recent Twitter exchange, an XRP enthusiast (SuitPotato) asked the former director of SEC’s San Francisco division Marc Fagel to share his thoughts on the development. “Marc, serious question. What are your thoughts on us buyers putting together a civil suit against the SEC for causing financial damages to us retail holders if the judge rules in favor of Ripple?” the XRP holder quizzed . In response, Fagel said a lawsuit from U.S. investors against the SEC is a losing case under current law. Furthermore, he noted that such a lawsuit could also attract sanctions to the lawyer who filed it. Although Fagel thinks people might perceive his opinion as biased, he pointed out that he has litigated against the SEC. Reacting to Fagel’s comment, SuitPotato noted that if the attorney gets sanctioned, the 75K XRP holders, who joined the SEC vs. Ripple legal action as amici, would support the sanctioned attorney. In response, the former SEC director said there are less risk-averse attorneys who would be willing to take such a case. Additionally, he stressed that the lawsuit would be fun to watch. However, he does not think it would “work out well.”

Fagel has been interacting with XRP community members since the SEC v. Ripple lawsuit began. Earlier this month, Fagel joined attorneys John Deaton and Jeremy Hogan to discuss the importance of Hinman’s documents to the Ripple lawsuit. Fagel asserted that the emails do not have a “bombshell” to help Ripple win the case.

Robert Wilson
Robert Wilson author

As the overseer of NicheBot's editorial content, I am committed to ensuring that all information published on our website is both accurate and relevant to our readers. My fervent support for the crypto industry has led me to closely monitor the developments within it since 2012, and I have contributed extensively to discussions and debates surrounding the world of Bitcoin.

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