Attorney Reveals Ripple’s Potential Strategy to Drastically Lower SEC Penalty

• Attorney John Deaton discusses the potential for Ripple to pay a significantly reduced penalty, challenging the SEC’s requested fine.
• Speculation arises regarding the possibility of a 99.9% victory for Ripple based on deductions and legal arguments presented by Deaton and Attorney Jeremy Hogan.

The ongoing SEC v. Ripple lawsuit has sparked heated discussions, primarily fueled by Attorney John Deaton’s revelations about potential deductions in Ripple’s anticipated penalties. The legal representative for the XRP community raised significant points, suggesting that Ripple might substantially reduce the SEC’s demanded fine.

Deaton’s speculation revolves around the possibility of Ripple paying a far lower penalty than the initial $770 million fine sought by the SEC. He highlighted the SEC’s mention in previous briefs that a considerable portion, approximately 95%, of Ripple’s XRP sales might have occurred outside the United States. Applying this percentage to the $770 million, Deaton suggested a potential deduction of $731.5 million, leaving a significantly reduced amount of $38.5 million.

However, the deduction doesn’t stop there. Deaton further argued that Ripple might leverage legitimate business expenses to diminish the penalty further, questioning the adequacy of resources expended by the SEC on the legal battle after the acceptable payment.

Ripple’s Legal Strategy and Victory Chances

Moreover, Deaton’s perspective extends to the likely outcome for Ripple, hinting at a 99.9% victory if Ripple ends up paying a minimal fine, possibly $20 million or less. This insight comes in the wake of Deaton’s assessment that the court ruling heavily favored Ripple, indicating a potential win for the blockchain company.

Amidst these discussions, Attorney Jeremy Hogan entered the fray, outlining strategies Ripple might adopt during the remedies briefing. Hogan referred to the SEC v. Liu case, emphasizing the equitable nature of disgorgement, which could lead to deductions based on net profits rather than gross sales.

Hogan indicated that Ripple could seek deductions based on legitimate business expenses, a tactic potentially bolstered by a recent Second Circuit ruling that emphasized the need for victims’ financial damages for a company to be held liable. This assertion further underlines the intricate legal maneuvers Ripple might leverage during the ongoing remedies phase of the Ripple-SEC lawsuit.