- A class-action lawsuit has been filed against former Securities and Exchange Commission Chairman Jay Clayton and executive Bill Hinman.
- In a significant development, Clayton and Hinman are accused of plotting to destroy Ripple.
A class-action lawsuit has been filed against former Securities and Exchange Commission Chairman Jay Clayton and executive Bill Hinman. The lawsuit is filed for alleged mismanagement of the Ripple (XRP) case. According to the lawsuit, the two violated federal regulations in their pursuit of XRP.
The US Securities and Exchange Commission vs. Ripple lawsuit has been ongoing for nearly two years. Recent rulings appear to be in favour of the defendants. The most recent decision demonstrated that the commission was perplexed about some critical aspects of the case. In a significant development, Clayton and Hinman are accused of plotting to destroy Ripple.
On April 11, 2022, Attorney Fred Rispoli, representing XRP investor Shannon O’Leary, filed a class action. The class of action was filed against the former executives. Rispoli said they had decided to take a stand against the tortious interference. The tortious interference was done by officials against Ripple. The tortious interference had damaged the finances of Ripple investors.
The lawsuit alleges that Clayton and Hinman’s persecution of Ripple was driven by the interests of third parties. The third parties stood to benefit from Ripple’s closure. Rispoli further said in his tweets thread that the claims under the lawsuit exceeded $5 million. SEC’s case against
Rispoli claimed in a Twitter thread that both SEC executives were plotting to bring down the XRPL network. He went on to say that Hinman and Clayton were well aware that XRP posed a significant risk to their previous clients.
In a recent decision, the court rejected the SEC’s position that Hinman’s infamous ETH speech should be used to evaluate digital asset offerings. The judge stated that the commission is now conflicted about its stance on the speech. The SEC avoided accepting responsibility for Hinman’s speech.