On May 20, a significant transaction involving Ripple and its native cryptocurrency XRP took place. This XRP transaction fueling speculations amid the ongoing lawsuit between Ripple and the U.S. Securities and Exchange Commission (SEC). Ripple transferred 50 million XRP ahead of the major May 20 deadline.

Ripple Transfers Major XRP Reserve Amid Lawsuit

According to Whale Alert, an on-chain data tracking platform, Ripple shifted 50 million XRP tokens to an unknown wallet. The transaction valued at approximately $25.67 million. This move comes just as crucial deadlines loom in the lawsuit.

Moreover, the transaction hints at a potential selloff move by Ripple. As the Ripple vs SEC settlement is nearing, the sale proceeds could be used toward the conclusion of this case. Additionally, its important to note that the SEC has responded to Ripple’s opposition to the exorbitant penalty of $2 billion.

However, the agency has held its stance and isn’t looking forward to lower the amount of penalty. Nonetheless, the XRP community is optimistic about the outcome. Fred Rispoli, a pro-XRP attorney, underscored that the SEC would agree to accepting a lower penalty, however, it could be much higher than Ripple’s ask of $10 million.

During the first episode of Legit Bros, a livestream focused on crypto, Rispoli highlighted important aspects of the ongoing lawsuit. In addition, he provided his opinion of possible end dates and the anticipated actions from both the SEC and Ripple.

Furthermore, Rispoli boldly predicted that the lawsuit could conclude at the district court level, without considering any appeals, by July or August. He also addressed the concerns of the XRP community, emphasizing the significant stakes involved as Judge Torres prepares to determine the fine Ripple must pay.

The XRP lawyer suggested, “I think it’s going to be under $25 million.” This figure spotlights a stark contrast to the SEC’s proposed $2 billion fine. This statement has drawn significant attention within the global crypto community. Moreover, the most recent XRP transaction was valued quite close to $25 million, which could be a coincidence or an indicator of an impending settlement.

Why Is The May 20 Deadline Important?

According to the court schedule by Judge Sarah Netburn, the SEC, Ripple, and any third parties are required to file briefs opposing the omnibus letter motions by the end of May 20. Following this, the court will rule on the omnibus sealing motions. Moreover, once the court has made its ruling, the parties involved have 14 days to file redacted versions of all relevant documents.

The substantial transfer and increased whale activity ahead of the deadline have sparked further speculation within the XRP community As of the latest data, the XRP price has seen a price decline of 0.47% over the past 24 hours, trading at $0.5125. On the contrary, Ripple-backed token’s 24-hour trading volume spiked 67.20% to $817.81 million owing to the numerous whale transactions.

The post XRP Lawsuit: Ripple Moves 50M XRP Ahead Major Deadline, What’s Happening? appeared first on CoinGape.

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Filed under: News - @ May 20, 2024 2:24 pm