SEC Bolsters Its Case Against Ripple's Key Defense

SEC Bolsters Its Case Against Ripple's Key Defense

The U.S. Securities and Exchange Commission has filed a letter of supplemental authority in support of its motion to strike Ripple’s pivotal "fair notice" defense.The pending motion, which could prove to be decisive in the closely-watched legal battle, was originally filed in April.The agency cites a Dec. 20 verdict in the SEC v. Fife case, in which the Northern District of Illinois court delivered a blow to defendant John M. Fife by granting the SEC's motion to strike his "fair notice" defense.The SEC took Fife and the five entities he controls to court in September 2020 for not registering as a securities dealer in order to sell 21 billion newly issued penny stocks that brought an estimated profit of $61 million.The court has rejected the defendants' argument about how the SEC was supposed to warn them about the novel interpretation of the term "dealer."The SEC now argues that the ruling provides additional authority for killing Ripple's key defense.

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