Members of the XRP community have slammed a Bloomberg journalist over misreporting current Ripple vs SEC case update.
Top crypto legal veteran John Deaton has even offered to help clear the air.

The XRP community has criticized the actions of mainstream news outlet Bloomberg after the latter reported that the United States Securities and Exchange Commission (SEC) is seeking to appeal Federal Judge Analisa Torres’ ruling that XRP is not security. Precisely, the concerned community members slammed popular Bloomberg reporter and writer Sonali Basak over her SEC vs. Ripple case analysis.

One XRP enthusiast identified as XRPGoat, said that Basak spewed a “staggering amount of misinformation” in the short segment. He went on to imply that this misinformation of viewers may have been intentionally directed and at the same time, he asked if the misleading narrative will be corrected anytime soon.

According to a video clip shared on Bloomberg Crypto, the digital asset channel of the media house, Basak reported that the U.S. regulator plans to file an interlocutory appeal challenging the federal court’s decision on XRP’s non-security status. In addition to this footage, there was a portion of a recently published Bloomberg article dubbed “SEC moves to appeal Ripple ruling that XRP is not security.” 

Basak also talked about Judge Jed Rakoff’s rejection of the ruling made by Judge Torres.

Judge Rakoff Sides With The SEC on XRP Security Status

While denying Terraform Lab’s attempt to dismiss the fraud charges filed by the SEC, Judge Rakoff also expressed his disagreement with the July 13th Sec vs. Ripple case decision. His action was triggered by the fact that the lawyers representing Terraform Labs and its embattled former Chief Executive Officer (CEO) Do Kwon, who is being held in a prison in Montenegro, cited Ripple’s partial victory as the basis for their argument to file a motion to dismiss their lawsuit.

Furthermore, Rakoff stated that the Howey test does not make provision for such a distinction between institutional and retail investors. 

That a purchaser bought the coins directly from the defendants or, instead, in a secondary re-sale transaction has no impact on whether a reasonable individual would objectively view the defendants’ actions and statements as evincing a promise of profits based on their efforts,

However, some XRP enthusiasts have taken it upon themselves to clarify that Judge Torres ruled that XRP is not security and the SEC is not trying to contest this decision. Pro-XRP lawyer and founder of CryptoLaw John Deaton even volunteered to visit the Bloomberg studio to shed light on the current happenings in the SEC and Ripple case if Basak is interested in getting her information right.

The regulator filed a motion last week to certify an interlocutory appeal which was approved by the court. Markedly, the brief is only seeking to review Judge Torres’s decision on XRP security status. Also, the SEC claimed that it was not seeking an appellate review on any holding relating to the fact that XRP had a non-security status.

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Filed under: Bitcoin - @ August 23, 2023 6:03 pm