Cryptocurrency XRP Investors Demand U.S. Securities and Exchange Commission Amend Its Charges Against Ripple Labs

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Investors, represented by Deaton Law Firm, allege former SEC Chair intentionally caused multiple billions of dollars in losses to innocent investors who purchased XRP on licensed U.S. exchanges and not from Ripple Labs

Attorney John E. Deaton has filed a legal action in Rhode Island Federal Court against the U.S. Securities and Exchange Commission (SEC) and its Acting Chairman Elad Roisman.

Filed on January 1, 2021, the petition and memorandum of support (Case 1:21-cv-00001; District Court, D. Rhode Island; full document can be found at @JohnEDeaton1 on Twitter) seeks a writ of mandamus from the U.S. Federal Court to order that Roisman properly fulfill his legal, fiduciary duty and correct an abuse of discretion allegedly made by former SEC Chairman Jay Clayton.

On December 23, 2020, Clayton and the SEC filed an enforcement action against Ripple Labs, alleging that all XRP, the third largest cryptocurrency in the world (behind Bitcoin and Ethereum), constitute unregistered securities.

The writ of mandamus asks the U.S. Federal District Judge to order Acting Chairman Roisman to limit the SEC’s charges, related to XRP, to only include the XRP distributed by Ripple Labs and/or its executives, and exclude the XRP held by innocent investors. Furthermore, Deaton seeks the SEC to declare the XRP in the accounts of petitioners and all others holding XRP as non-securities consistent with other cryptocurrencies such as Bitcoin and Ethereum.

Deaton expects the Rhode Island Federal Court to hear his petition for the writ of mandamus within the coming weeks.

Deaton Law Firm was established in 2006 by Owner/Managing Partner John E. Deaton. Prior to establishing his firm, Mr. Deaton worked for a national plaintiffs’ firm specializing in asbestos litigation, products liability, toxic torts, and personal injury. He served as one of the firm’s principal trial attorneys in New York, Rhode Island, and Connecticut, trying cases against national defense lawyers, litigation firms, and high-profile corporations. After spending seven years on active duty as an officer in the U.S. Marine Corps, Mr. Deaton turned his attention to representing victims of asbestos. Deaton Law Firm is located at 450 North Broadway in East Providence, RI 02914; (401) 351-6400; http://www.deatonlawfirm.com.

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Betty Galligan

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