142 Interactions, 2 today
The continuing case brought by the United States Securities and Exchange Commission against Ripple Labs and its executives has been underway since December. In the most recent development, Judge Sarah Netburn just set a phone conference on 15 July at 3:00 p.m. to consider the U.S. Securities and Exchange Commission’s [SEC] request to quash former SEC Division of Corporation Finance Director William Hinman’s deposition.
SEC attorney Ladan Stewart stated in the agency’s request that Ripple had failed to meet the “heavy burden of demonstrating exceptional circumstances sufficient to justify such a deposition.” Furthermore, according to the government, the San Francisco-based company failed to demonstrate Hinman’s “unique first-hand knowledge” of XRP offers and sales.
Needless to say, the blockchain business strongly refuted this claim, as did potential intervenors XRP holders represented by Attorney John Deaton.
Here’s what John E. Deaton, Managing Partner of the Deaton Law Firm had to say in his recent blog post,
“Hinman is no longer a high-ranking government official. He is a private citizen. Surely, after investing millions of dollars in Hinman while he was serving at the SEC, Simpson Thacher would give him adequate time off to answer some questions.”
In addition to this, Deaton further touched upon a “quick, but not exhaustive” review of what all XRP holders and crypto-holders “deserve to know” should William Hinman be permitted to testify under oath.
These concerns include: 1) a potential conflict of interest related to Hinman’s work with Simpson Thatcher; 2) the odd timing of Coinbase’s ETC listing; and 3) Hinman’s meeting with the Ethereum Foundation, among others.
Having said that, the said deposition could prove otherwise. Not so long ago, Attorney Jeremy Hogan gave his perspective on the same. According to Hogan,
“My quick take on the scheduling of a conference on a fully briefed motion is that it is bad for Ripple. If she was satisfied by the briefings she would have simply ordered the deposition to take place. She might need more from Ripple if she is to order the deposition. WE’LL SEE!”
At the time of writing, the public call-in information for the aforementioned teleconference had been docketed by the court.
“Even if it goes the SEC’s way on Hinman, it’s the equivalent of Ripple being up 40 in the fourth quarter of a basketball game and the SEC managing to go on a 7-2 run.”