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The Ripple v. SEC Case So Far: What You Need to Know


District Judge Analisa Torres has dismissed the Securities and Exchange Commission’s (SEC) request to certify an interlocutory appeal aimed at overturning its recent and widely publicized courtroom loss against San Francisco-based blockchain tech company Ripple Labs.

While this is a major win for Ripple, the SEC has not lost its ability to appeal. Instead, the regulatory agency will need to wait until after the trial concludes and a final judgment is issued to pursue its appeal on all relevant issues at once.

Ripple Scores Another Win

The US District Court for the Southern District of New York has denied SEC’s motion in the latest order on several grounds.

The judge emphasized that the issues at hand are not pure questions of law but involve complex factual and economic analyses. The order pointed out that the court had carefully examined the totality of circumstances surrounding the different transactions and schemes involving the sale and distribution of XRP.

The subsequent conclusions by the court were based on an extensive factual record and detailed expert reports, making these questions unsuitable for interlocutory appeal.

The judge noted that the SEC did not present conflicting authority on the issues or demonstrate that there was substantial ground for a difference of opinion. While the SEC cited another recent case to argue such a difference of opinion, the judge found that the cited case did not conflict with the Court’s reasoning, and the SEC’s arguments did not hold.

Lastly, the judge highlighted that allowing an interlocutory appeal, in this case, would likely prolong the litigation by subjecting it to multiple rounds of appellate review, ultimately delaying the resolution of the matter. Instead, the court believed the case should proceed to judgment, permitting a single round of appellate review on a complete record.

The decision to reject the SEC’s motion for interlocutory appeal means that the litigation between the SEC and Ripple Labs will continue as scheduled, with the trial set to begin on April 23, 2024.

This development underscores the complexity of legal disputes in the crypto space, where issues related to the classification of digital assets as securities and the application of existing securities laws are still being explored in courts.

The outcome of this case will likely have significant implications for the regulatory framework surrounding digital assets in the United States.

SEC Can Still Appeal But…

The ruling does not mean that the SEC has “lost its appeal” in the sense of being permanently barred from appealing. What it means is that the SEC’s request for an interlocutory appeal on specific issues has been denied.

Interlocutory appeals are sought before a final judgment in a case, and they are typically granted only in exceptional circumstances when certain legal criteria are met. In this case, the judge determined that the SEC’s request for interlocutory appeal did not meet those criteria.

The SEC still has the option to appeal the case after the trial reaches a conclusion and a final judgment is issued. In such a scenario, the commission can raise any legal issues, arguments, or claims it believes are relevant to the case. This allows both parties – Ripple and the SEC – to present their arguments and evidence in a higher court for review if they are dissatisfied with the outcome of the trial.

Alameda Research and FTX Relationship Revealed: Token Transfers Exposed by Nansen



According to blockchain data analysis firm Nansen, Alameda Research conducted token transfers worth $4.1 billion before the collapse of FTX. The FTT token is among the crypto assets involved in the transfer. On-chain data shows that FTX held a significant portion of the total FTT token supply and conducted large FTT transactions between these two companies. The report also revealed that Alameda had been selling FTT tokens on unlicensed exchanges and using them as collateral from cryptocurrency lending firms.

Alameda and FTX Relationship Exposed

A report published by Nansen shed light on the close relationship between the two companies founded by Sam Bankman-Fried. The former CEO of FTX is facing a series of allegations related to the collapse of the companies and will appear in court for the first time.

According to Nansen analysts, the collapse of FTX began with the report from Alameda Research, which held 40% of the FTT supply, in September 2022. At that time, the company had tokens worth $14.6 billion. Analysts highlighted suspicious interactions observed between these two companies. According to this, Alameda conducted a series of transfers to FTX, including 4.1 billion FTT tokens and $388 million worth of US dollars, between September 28 and November 1.

On-chain data also shows that FTX holds approximately 280 million out of a total of 350 million FTT supply. This figure is equivalent to 80% of the total supply. Blockchain data also reflects a significant portion of the billions of dollars’ worth of FTT transaction volume occurring between various FTX and Alameda wallets.

Transactions Made via FTT Token

In addition to all this, Nansen stated that a large majority of the FTT token supply, consisting of company tokens and tokens outside the company, is locked in a three-year vesting contract. According to analysts, the sole beneficiary of the contract is a wallet controlled by Alameda.

In short, Nansen pointed out that the two companies control approximately 90% of the FTT token supply and claimed that these organizations could support each other’s balance sheets. The report also suggests that Alameda likely sells FTT tokens on unlicensed exchanges and uses them as collateral for loans obtained from cryptocurrency lending firms:

“This theory is supported by past on-chain data, where we regularly observed significant inflows and outflows with transfer volumes of up to $1.7 billion between FTX, Alameda, and Genesis Trading wallets, as seen in December 2021.” 




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