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Ripple Secures Another Win, DOJ: MNGO and CRV, are Commodities

  • U.S. Department of Justice refers to two cryptocurrencies as non-securities in a court filing against Avraham Eisenberg.
  • John Deaton XRP Attorney and lawyer believes crypto prices could plummet even further if Gensler pursues more regulatory action in the crypto space.

The San Francisco-based start-up company recorded a win following the recent statement from U.S. Department of Justice, Judge Analisa Torres. The DoJ labels two cryptocurrencies MNGO, and CRV, as non-securities in a court hearing of Eisenberg, who exploited the decentralized finance platform Mango Markets and netted $67 million.

The self-acclaimed game theorist and crypto trader Avraham Eisenberg was recently arrested in Puerto Rico and charged with commodities fraud. It is believed that this is the first time a U.S. resident has been charged with manipulating a decentralized finance (DeFi) trading platform.

Throughout the court proceedings, DOJ insists that the digital assets, MNGO, and CRV fail the SEC Howey Test. The body categorizes both tokens as commodities on many different occasions. The classification of the tokens as commodities holds massive weight for Ripple against SEC.

AVRAHAM EISENBEG, the defendant witifully and knowingly, directly and Indirectly, used in connection with swap, a contract of sale of a commodity in interstate and foreclosure commerce, and for future delivery on and subject to the rules of a registered entity, a manipulative and deceptive device and contrivance, in contravention of Title 17, Code of Federal Regulations, Section 180.1

The Justice Department stated

In December 2020, the Securities and Exchange Commission(SEC) sued Ripple labs alleging that they have been conducting a $ 3.1 billion unregistered securities offering since the asset was created back in 2013. The crux of the SEC complaint is that XRP is not a currency, but a security, and therefore subject to strict regulations.

Ripple’s Wins

A wave of organizations came out in support of Ripple and filed several amicus briefs to the court. A total of 16 different briefs have been submitted, with Coinbase the most trusted cryptocurrency exchange presently also filing its support. Apart from that, about 70,000 XRP holders also filed a brief in defense of the company.

Notably, Ripple scored when the court denied the SEC’s request to remove the consulting firms’ names that helped assemble expert witnesses, on top of that, the presiding judge overruled SEC’s attempt to withhold the documents relating to former Division Director William Hinman. The documents in contention concern a speech Hinman delivered at a summit in 2018, where he said Bitcoin (BTC) and Ethereum (ETH) are not securities.


On a recent development, attorney and XRP supporter John Deaton thinks Gary Gensler, the chair of the U.S. Securities and Exchange Commission (SEC), will pursue more regulatory action that will drive crypto prices lower. As reported by Crypto-newsmedia, the pro-XRP lawyer John Deaton projected that the final ruling could be made either April or May next year.

Most importantly, the final ruling is expected to clarify the controversial classification of cryptocurrencies as securities. Furthermore, the outcome of the case is considered to have a potential impact on the value of XRP. Consequently, crypto prices could further plummet, allowing traditional financial institutions like Goldman Sachs or JPMorgan Chase to thrive.

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