Famous Lawyer Speaks Positively About Ripple.

Lawyer Deaton emphasized that the lawsuit against Ripple is not based on fraud.

Attorney John Deaton, who represents XRP holders, spoke about the case between Ripple and the SEC. Deaton discussed the reasons why the potential loss of $770 million for Ripple is low, emphasizing that the case is not a fraud case. Ripple's XRP sales are under scrutiny in the United Kingdom, Japan, Switzerland, and other regions.

I will address this on Tuesday’s @CryptoLawUS livestream. @Ripple will pay a lot less than $770M.

The Supreme Court ruled disgorgement is not punitive in nature and cannot exceed “net profits” from the sales. A company can deduct legitimate business expenses. @bgarlinghouse and… https://t.co/jDkOfouj1w

— John E Deaton (@JohnEDeaton1) November 11, 2023

Attorney John Deaton, who represents XRP holders, spoke about the case between Ripple and the SEC. Deaton stated that it is unlikely for Ripple to potentially lose $770 million and explained the reasons behind it.

Ripple's XRP sales are under scrutiny in the United Kingdom, Japan, Switzerland, and other regions. However, regulators such as the Financial Conduct Authority (FCA) in the United Kingdom and the Financial Services Agency (FSA) in Japan did not classify XRP as a security. This allowed XRP sales to continue legally, and this approach by countries emerged as a factor strengthening Ripple's position.

Deaton emphasized that the Ripple case is not a fraud case but rather a disagreement with regulators. This is significant because it directs the focus towards compliance with regulations rather than criminal sanctions.

Considering that a significant portion of XRP sales occurs outside the United States, the potential for loss is substantially reduced. Given that sales outside the U.S. constitute 90% of all sales, Deaton predicts a significant decrease in the potential loss amount.

The attorney noted that most of the corporate XRP sales did not result in losses because the current XRP price exceeded the levels during these sales. Therefore, he highlighted that there is no investor loss.

Deaton also emphasized that the potential for investor losses has decreased due to transactions conducted through On-Demand Liquidity (ODL).