Judge Torres Draws Order To Drop Case Against Ripple CEO & Founder

• Judge Torres officially dismissed the case against Ripple’s CEO and co-founder, as confirmed by attorney Filan.
• In July, the SEC presented evidence of $728.9 million in XRP sales violating securities laws, leading to a trial.
• Attorney Jeremy Hogan shared that the SEC’s chances of winning an appeal against Ripple are 2.367%.

A recent post by popular crypto attorney James K. Filan confirmed that Judge Analisa Torres has issued an order formally dismissing the case involving Ripple’s CEO Brad Garlinghouse and co-founder Chris Larsen. Filan also attached images of the court filings signed by Judge Torres at the Southern District of New York court.

In December 2020, the SEC filed a lawsuit against Ripple, alleging that the company had unlawfully raised over $1.3 billion through an unregistered securities offering by selling XRP. In July, Judge Torres in Manhattan delivered a victory to Ripple in the case by determining that the sale of XRP on public exchanges did not qualify as an unregistered securities offering. Furthermore, she declined the SEC’s request to appeal the ruling.

Meanwhile, the judge agreed that the SEC had provided evidence that Ripple’s sales of $728.9 million worth of XRP to hedge funds and other sophisticated buyers had violated securities laws. The SEC claimed that Garlinghouse and Larsen were involved in those sales and, therefore, were scheduled to be presented before a jury for trial.

On October 21, attorney Jeremy Hogan shared that the SEC’s chances of winning are a mere 2.367%, “same odds as the Jets winning the Super Bowl!” As per Hogan’s analysis, if the SEC chooses to pursue an appeal next year and secures support from the appellate court in 2025, the agency has a 14.2% chance of winning. He further highlighted ,

Because of the way the Judge wrote her Order, the Appellate court would have to send the case back down to the trial Judge for FURTHER judicial findings and determinations!

Adding to the SEC’s legal journey, even if the appellate court rules in their favor regarding programmatic sales, the issue would still be subject to further examination by the trial court. Hogan has emphasized that following these renewed determinations at the trial court, a subsequent appeal would be essential.

Only after successfully navigating this legal maze could the SEC potentially emerge as the victor. However, Ripple could potentially pursue an appeal to the Supreme Court.