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The U.S. Securities and Exchange Commission (SEC) has filed an amended complaint against Ripple Labs and its founders in its ongoing lawsuit. The filing now includes more factual details regarding Ripple’s two executives Brad Garlinghouse and Chris Larsen. The amended complaint was previously announced by the SEC in a joint letter on Feb. 15.
Amended Complaint Includes New Allegations Against Ripple Executives
In the latest development, the SEC has included factual details against the defendants of the Ripple case and its two executives.
According to attorney Jeremy Hogan, who has been taking a closer look at the case development, it is very rare for the regulatory agency to take action against individuals as enforcement is extremely difficult. This signifies that the SEC was able to prove the knowledge of intent on the part of the defendants.
The amended complaint now includes a new allegation that both Larsen and Garlinghouse played significant roles in the unregistered sales of the XRP token.
Larsen and Garlinghouse have been both charged with offering, selling securities, and others of Ripple in the violation of the Contracts Act.
This amended complaint might have been retrieved from last week’s letter where both Larsen and Garlinghouse filed motions to dismiss the personal lawsuits on Jan. 27. This resulted in the SEC amending its complaint to avoid any motions of such kinds.
SEC Provided Factual Evidence Against Ripple Executives Personal Involvement
Hogan added that it is unlikely that Ripple will be successful with their motions to dismiss the personal lawsuit case in response to the new factual evidence on how the Ripple executives were more personally involved.
Soon after the amended complaint was filed, Ripple’s General Counsel Stuart Alderoty tweeted:
“It is disappointing that the SEC needed to fix their complaint after years of waiting to bring it in the first place.”
As many of you have seen, the SEC filed an amended complaint today. The only legal claim remains: did certain distributions of XRP constitute an investment contract? Disappointing the SEC needed to try to “fix” their complaint after waiting years to bring it in the first place…
— Stuart Alderoty (@s_alderoty) February 18, 2021