Ripple Strengthens Legal Team Amid Ongoing SEC Dispute

The cryptocurrency company Ripple has strengthened its legal team amid its ongoing dispute with the U.S. Securities and Exchange Commission (SEC). Recently, Ripple appointed the distinguished attorney, Rahul Mukhi, to represent itself and its CEO, Brad Garlinghouse. This news was announced by James K. Filan, a defense lawyer and former federal prosecutor, earlier this week.

Mukhi brings extensive experience to the case, having served as an Assistant United States Attorney from 2010 to 2016 before joining the international law firm Cleary Gottlieb Steen & Hamilton LLP as a counsel and partner. His background includes handling cases related to financial and tax fraud, public corruption, cybercrime, money laundering, and organized crime.

The legal confrontation between Ripple and the SEC began in December 2020 when the SEC alleged that Ripple had traded billions of dollars’ worth of XRP as a security without proper registration. Since then, the case has evolved significantly.

In July 2023, Ripple achieved a partial victory when a U.S. court ruled that the majority of its XRP sales did not qualify as offers of investment contracts. However, the SEC appealed this ruling at the beginning of September 2023, signifying that the disagreement is far from resolved.

Although it is quite common for co-defendants in a case to have different attorneys, some have expressed curiosity about Garlinghouse’s decision to hire Mukhi. This choice may be strategic, given Mukhi’s profound expertise in government and regulatory investigations.

Ripple’s legal team has seen some changes recently, particularly following Lisa Zornberg’s withdrawal due to her departure from Debevoise and Plimpton LLP. Despite this, several attorneys from the firm continue to represent Ripple.

In the SEC’s case against Ripple, both CEO Brad Garlinghouse and Executive Chairman Chris Larsen are named as co-defendants. Despite the progression of the case, there is speculation regarding its likelihood of going to trial, especially considering the involvement of Ripple’s founders as co-defendants. Legal expert Fred Rispoli has suggested that the SEC’s inclusion of Ripple’s founders was a tactic to pressure the company into accepting a less favorable settlement.

Notable figures, such as former SEC Chair Jay Clayton and former SEC Director William Hinman, have been mentioned in connection with the case. According to pro-XRP attorney John Deaton, if the SEC’s case against Ripple’s founders reaches trial, Hinman’s cross-examination would be highly significant.

As the legal battle unfolds, Ripple’s XRP price has managed to rebound to the $0.5 mark.