😱👀SEC lost another case: The decision created excitement over Ripple
The US Securities and Exchange Commission (SEC) lost another lawsuit it filed in 2021. The authority had accused Aron Govil of defrauding investors in two companies he controlled, Cemtrex and Telidyne, and had taken Govil to court. Among the accusations were that Telidyne company made Deceptive statements that it was developing mobile applications that would facilitate cryptocurrency transactions and help fight the coronavirus. The SEC had requested additional compensation from the court in addition to the fine.
2 U.S. Court of Appeals. With the decision announced yesterday, the Department ruled that the SEC cannot claim damages against the defendant without proving that the investors suffered financial losses.
The series of losses continues”
Ripple's chief legal counsel, Stuart Alderoty, pointed out that the SEC had been defeated in another case. Alderoty said, "Another loss for the SEC this week... The streak continues. 2 In the case SEC v Govil. The Department ruled that the SEC could not seek compensation without acknowledging that the ‘investors’ had actually suffered financial loss. In other words, if there is no harm, there is no foul.” he commented.
Will the SEC suffer another loss against Ripple?
Some legal experts believe that after the decision in the Govil case, the SEC may suffer another defeat against Ripple at the settlement stage. As it is known, in the case between the SEC and Ripple, the court had ruled that XRP does not qualify as an investment contract per se. Dec. However, excluding corporate XRP sales, he considered it to be an investment contract. The SEC will now demand compensation from Ripple, but according to experts, for this, institutional XRP investors will have to prove that they have lost money.
