The XRP token fell 8.4% on Tuesday amid new charges from the US Securities and Exchange Commission (SEC) against XRP holders.
The regulator accused the token investors of starting a “crusade” against the agency.
XRP on Tuesday fell below $ 1.35 for the short term, while at the end of last week it was testing two-week highs above $ 1.65.
The US Securities and Exchange Commission is trying to prevent XRP holders from participating in the Ripple lawsuit. According to the regulator, the intervention of a third party will delay the lawsuit and require additional resources, writes forklog.
The SEC also notes that investors did not provide any new arguments on the merits of the case. Instead, they paraphrased the theses of Ripple’s lawyers regarding the legal status of XRP, the intended use of the token, and other issues that have already been stated by the participants in the process.
In addition, the Commission argues that participants cannot receive any incentives from exchanges that have suspended XRP trading or removed the token from the list, since they are not a party to the lawsuit.
Joining a group of investors will open up opportunities for intervention by thousands of XRP holders who may have opposing views and interests. This, in turn, “will wreak havoc in the whole business,” the regulator said.
The SEC claims XRP holders are trying to launch a “crusade” against the government agency to expose its alleged corruption.
According to the regulator, attorney John Deaton, who leads the “army” of XRP holders, “in this way is simply trying to increase his influence on social networks.”
The next closed hearing in the Ripple case will take place on May 6, 2021. The meeting will consider issues related to the initiation or settlement of legal claims and administrative cases.
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