SEC body faces loss in Govil loss, Ripple may get benefits from this case
Legal experts said that outcomes from the SEC vs Govil case might bring a better opportunity for Ripple to defend against SEC’s charges.
As per the United States Securities and Exchange Commission (SEC), Aron Govil, the defendant, conducted fraudulent securities offerings through his company, Cemtrex. As part of a settlement with Cemtrex, he agreed to repay the proceeds of his fraud by surrendering his Cemtrex securities to the company.
In this case, the court judge ruled that “if a buyer suffers no financial loss, the SEC is not entitled to disgorgement from the seller.”
Stuart Aldetory, the chief legal officer of San Francisco headquartered fintech firm Ripple, said that the SEC body is continuously facing loss in legal battles.
The Ripple legal officer noted that the Second Circuit Court of Appeals stuck to their decision in the Govil case. They ruled that if a buyer doesn’t lose money, the SEC can’t force the seller to give back any profits they made.
Stuart indirectly dragged attention toward the active Ripple vs SEC case and noted that there are huge chances that the Ripple representative lawyers are going to consider this court ruling to defend against SEC’s charges.
In the SEC vs Govil case, popular pro-Crypto Australian lawyer Bill Morgan said that the SEC is using the Govil decision to argue for disgorgement in the Ripple case. They claim Ripple should give back all the money they made from institutional investors, minus the expenses.
If Ripple can prove no investor lost money, the fact that the court didn’t reconsider Govil could help their case.
In short, the situation is going all in favor of this San Francisco headquartered blockchain firm. However, already Ripple partially won the legal battle against the SEC body but if in the ending phase, Ripple scores win then it would be a very big loss for the SEC body against the Crypto sector.
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