Over 6,000 XRP holders have petitioned to participate as third-party defendants in the ongoing SEC lawsuit against Ripple Labs. John Deaton, an XRP holder of Deaton Law Firm LLC filed a motion on behalf of XRP holders to participate in the Ripple case. He argued that XRP holder’s interests were not adequately represented as they are the ones who faced the direct consequences of the lawsuit.
In a letter to Judge Analisa Torres, John Deaton of Deaton Law Firm LLC filed a motion on behalf of XRP investors in the hope to allow participation for XRP holders as third-party defendants.
Given that the holders of XRP cannot exclusively rely on Ripple to protect their interests, Deaton argued that the invertor’s intervention was necessary.
He claims that the SEC lawsuit against Ripple and its executives resulted in over $15 billion in losses for XRP holders, days after the lawsuit was initiated.
Deaton, himself being an XRP holder, argued that the interests of XRP investors were not being adequately represented in the ongoing SEC lawsuit against Ripple Labs and its executives.
The filing read:
“Given SEC’s own statements that this Court is the exclusive forum to hear claims regarding this matter, and Ripple’s position that XRP holders cannot rely on Ripple’s efforts as protection of their interests in this case and the nature of Ripple’s defense, the XRP Holders’ intervention is necessary.”
He also demanded that whatever funds were received from the defendants should be placed in a separate fund for XRP holders who had to face losses in connection to the XRP lawsuit of December 2020.
Following the U.S. SEC lawsuit, major cryptocurrency exchanges such as Coinbase, Binance.US, eToro, Bittrex, and OKCoin have already delisted XRP from their platforms.
Digital asset management firm Grayscale also liquidated its XRP holdings and directed the funds into Bitcoin and Litecoin.
The blockchain company further lost its partnership with payment firm MoneyGram following an announcement in the latest quarterly report that MoneyGram would not be expecting any market development fees from Ripple Labs in Q1 2021.
Ripple’s XRP price dropped from a high $0.76 to $0.18, just two weeks into the case.