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SEC vs. Ripple: Attorney Jeremy Hogan Answers Your XRP Lawsuit Questions From YouTube and Twitter.

By July 24, 2021No Comments


Hello and welcome to a special weekend edition of Legal Briefs XRP edition.  I think I’ve been making too many videos on the weekend because my daughter bought me a Subscribe button box – from her own money. 

Today we are going to do a quick– fire session and no, I’m not talking about a problem you might have as a teenage male, I’m talking about rapid fire Q&As  – yes, all the your strange questions regarding the SEC v. Ripple lawsuit WILL be answered no.

My wife has pulled at least 20 questions from Youtube and Twitter and compiled some very interesting questions – just like the game shows of yore.

She said in the Bass store – bass. I tell you what 70s people were crazy.  Now fast forward to our risqué modern gameshow.

I want to hold his “Money” was the #1 answer.  America, what have we become?

Welcome back and quick disclaimer – don’t take anything I say as legal advice. At my last trial I objected that my client was asked a leading question and the Judge reminded me she was just being asked If she would tell the truth and nothing but the truth. Badoomching. Actually, that’s not true at all in fact I am kind of known as the Johnnie Cochran of Florida

Of course there’s one big difference between me and Attorney Cochran – he had a mustache and I have the beard of course.

In any case, let’s get to these questions and I will ask my wonderful wife to be the inquisitor and let’s see if you can stump the lawyer.  You can’t.  Let’s go – hit me with the questions.

Okay, question number one

(From: madwand28 on YouTube Does Hinman have the ability to plead the 5th and not answer?)

As you may know Ripple won on the issue and the deposition of former SEC Director Hinman will take place July 27 and yes, he could invoke the 5th amendment right not incriminate himself in criminal activity.  In the civil context, which Ripple cases is, the effect of pleading the 5th and not answering would be that the Judge can make an adverse inference against the deponent. For example, if I ask Dave Chapelle during a deposition “Isn’t it true you broke into Eddie Murphy’s mansion and stole his joke book?” And he replies:

I could then take that deposition into the Murphy v. Chapelle civil case and the Judge could INFER from his refusal to answer that he did indeed steal Murphy’s joke book.

BTW, early in his career Dave Chapelle got booed off the stage at the Apollo THeatr – booed off the stage! But he didn’t give up and now… he’s Legend. 

(From: Fumiyo88 on Youtube Why do lawyers use yellow notepad?)

Answer: Most lawyers use yellow notepads because they have to deal with so much paper and having handwritten notes on yellow paper helps it stand out among the pile of white documents.

Basically, we are so egotistical we see our notes like you see this yellow umbrella in the snow – brilliant but isolated.

(From: lala mal on Youtube The SEC is playing games with the documents the Judge told them to give to Ripple. What about the documents they still refuse to handover? Can they just ignore the Judge?)

Great question. Ripple essentially won at the hearing arguing that the SEC had to provide certain documents related to any internal but formal thoughts on whether Ether, Bitcoin etc. was a security – including internal documents.  At the hearing last week, one of Ripple’s attorneys brought the documents up at the end of the hearing and said the SEC had not provided ONE SINGLE document. The Judge said that they could formally bring that issue up to her by motion and since we didn’t see the motion filed this last week, I would say that some of the documents have been produced at this point although…I would bet we still see a motion to compel production of those documents before the end of discovery in a month. There’s a lot of document discovery going on RIGHT NOW in this case that we are not privy to.

(From: Ron wilkins on Youtube If Hinman becomes suspected of crypto space manipulation would he and his law firm risk insider trading laws?

Inside trading is where you trade a security “Based on material, nonpublic information about the company” 

If there was some sort of collusion between Director Hinman and his firm to manipulate Ether market prices, it would probably fall under a “fraud” charge and not under insider trading.  But it would still be a CRIME.

Woops. Wrong handcuffs picture. (From: Burak Turan on Youtube

Ok, Ripple wins the case, XRP becomes the reserve currency and the value is thousands of dollars, what will happen to the hodlers? Will they be rich by selling on a regulated exchange or they can not sell their XRP? I am afraid their XRP will be counted invalid somehow.)

One XRP is worth thousands of dollars Burak Turan.  I like the way you think.

This will be for me when I take up two spots at the marina.

Anyways, the answer to the question is that if Ripple wins the case, under current U.S. law at least, you will be able to trade XRP. Period.   Allah Yehfazak Mr. Turan.

(From: Michael Andrew on Youtube Damn you really are never wrong hunh? One question, after this case is done is the SEC able to take it to supreme court or some higher power and keep it going?)

Yes, I’m never wrong and also – Good question. Here’s how that works. And while I talk take a look at this cool chart.  Ripple is starting in #94 in a United States District Court. If the SEC loses, yes, it can appeal to the 2nd circuit U.S. Court of Appeals which is #12 and if the SEC loses there, can appeal AGAIN to the U.S. Supreme Court.

This would all take years – more than one year for sure.  The thing to remember is that the SEC, as the Appellant – what I call the “Loser” ,  the SEC would have to find an error in how the District Court applied the law and NOT in how the Judge construed the facts.  In our situation this is only plausible as to the analysis as to whether Ripple had Fair Notice.  In other words, I think The Fair Notice issue might be Appealable.  BUT If Ripple wins on the facts that XRP is not a security I don’t see a legitimate appealable issue there. AND, also remember, that until an appeals court says otherwise, the District Court ruling stands as the law. So, a Ripple win is still a win even if it is appealed.

By the way, here’s a chart of the U.S. Governmental Health System.

And….STOP watching before you get a brain aneurysm.

(From Mark Licano on Youtube Does anyone stand a chance of obstruction charges that may stick for not providing court ordered documents?)

In a civil case…I’ve never heard of obstruction charges. Generally, a party in a civil case is only subject to civil penalties – not criminal.  Failure to provide court ordered documents, in a civil action usually starts with monetary fines and eventually a dismissal of the case by the Judge.

Or, an alternative punishment is this:

That was SniperWolf on Youtube– my daughter’s favorite but yes – maybe we’ll see the SEC on a street corner holding up a sign “I withhold documents from production”… yes, a man can dream.

(From Charles Thomas on Youtube I Wonder if working for u is as good as your Youtu be video?)

Yes, Our staff happens to love me. They think of me kinda like a God.

That hurts.

(From Anil Rai on Youtube Why is XRP ADA BTC price and maybe many others so closely correlated? You just have to look one chart and don’t have to bother looking other. Thank you!)

Interesting question and I PERSONALLY  have no idea but you still haven’t got me stumped because I am an expert on research and there are the 2 formulas which answer your question at the top of page 7 of this research paper:

But I skimmed this research paper on cryptocurrencies and price correlation and it’s even more interesting than I imagined because as you are aware, the SEC has to prove that XRP is a security and one thing it will have to show is that retail purchasers, me and you, are looking to Ripple to increase the value of XRP. And what this paper shows is that the price of XRP is not really correlated to ANYTHING Ripple does – in other words, Ripple ended its partnership agreement with Moneygram on March 9 and… nothing happened to XRP’s price.  However, according to this research paper, the price of XRP is heavily correlate with Caradano. 71% correlated according to our experts. Look at pg 14 of our paper.

Ripple has briefly touched on this part of its defense but this is the first time I’ve seen that it correlates so strongly with Cardano. Interesting.  So, Ripple can announce a great business deal and XRP price won’t budge but if the price of Cardano falls 10% – you’d expect to see the price of XRP fall 7.1%.  That is NOT how a security acts. I hope Ripple has a really good expert witness in statistical correlation lined up – maybe it should reach out to the author of our paper. I personally love working with expert witnesses – I always learn something new.

(From Chris S from Youtube Jeremy, you mentioned that Judge Netburn had noted the “significant public interest”  in the case and is aware that the phone lines are nearly always maxed out. Given this would you consider Judge Netburn is more likely to allow John Deatons intervention? PS Great work btw.)

Thank you Chris. I think it matters – it matters a lot.  But I think it’s already been decided behind the scenes so to speak that the Motion to Intervene can’t be granted.  I think the question is whether the Petitioners will be granted the right to file a Legal Brief in the case at summary judgment. And the Court has been very quiet on this issue so that one I can’t answer yet.

(From Joe Mundo Rodarte on Youtube Question for you. Are we tax payers paying for all the Sec’s shenanigans?)

Yes. But…

I wanted to play a part of Shenanigans by Jasiah but… even Jasiah copyright violated me!

(From CB B on Youtube Atty hogan I will be calling you when I ever need legal advice. Top notch sir. Questions, in your opinion, do you think the letter from the two SEC Comminssioners was calculated? Seems too coincidental to me?)

Commissioners Peirce and Roisman are both lawyers and are very intelligent and I do NOT believe they issued the statement saying that the marketplace has no clarity on the security status of cryptocurrencies in the middle of the biggest Fair Notice defense case ever without knowing that Ripple would use the letter in defending itself. So yes, I think it was calculated.

There you go – a little Dr. Evil hmmmm for you.

(From Steve on Twitter Hey @attorneyjeremy1 is there a difference between Ripple selling XRP to businesses and jed selling XRP from this taco stand wallet onto open exchanges?)

Okay so Jed Mccaleb was a Ripple founder and left the company with a billion zillion XRP back in 2014 which he has since been selling back into the market for the last 6 years – making him very rich and which sales I think have almost ended. But he basically sold XRP just like Brad Garlinghouse and Chris Larsen – he just wasn’t employed by Ripple when he sold it.  AND he wasn’t sued. But could he be? Let’s do the legal analysis.

So, the SEC is alleging that XRP is a security and so for Jed to sell XRP legally he would have to fall under an exemption. Here is how an SEC lawyer explained it to the Judge back in the hearing in March:

Looking at page 44 of the hearing transcript.

Court:  Presumably then every individual in the world who is selling XRP would be violating securities laws?

(I loved that question)

SEC Attorney: Section 5 focuses on the issuer and affiliates of the issuer that are captured by the statute and Section specifically exempts these transactions of other people buying and selling XRP.

So, the legal question becomes is Jed MccAleb an affiliate of Ripple? And the short answer is that because he received the rights to receive the tokens during his break-up with Ripple as an executive that probably prohibits him from receiving the protections of Section 4. And so, Mr. Mccaleb is probably watching the Ripple lawsuit very closely and praying that Ripple wins.

(From clickbait TV on youtbe You guys think Jermey uses his hands as much in court like he’s making on a Youtuve video?)

(hands at side)  I have no idea of what you are referring.

(From TAIG on Twitter I was really hoping to hear a gavel when the judge called out the SEC lies. Are gavels still used like they were in the colonial era? I cannot think of a better time to hear gavel strike then yesterday’s ruling.)

Great question and it made me think and in 20 years, I have NEVER once heard a Judge use a gavel. I have heard him instruct the bailiff to throw people out of the courtroom – but never a gavel.

AOC don’t play. (XRP Army News 1 on Twitter

Jeremy based on how things have gone so far… would you say in your opinion it’s because of the merits of the case or poor or bad lawyering by the SEC attys. Thanks. )

No doubt – the SEC attorneys know what they are doing. Ripple just has the $ to hire the best there are. And always remember that law doesn’t happen in a vacuum and the SEC has 2 big problems: 1. It has a strange organizational position that it provides guidance to the market but is not bound by ANYTHING it says and 2. It waited SO long to bring this action – over 7 years and that is not equitable. So, the SEC lawyers are fighting an uphill battle on those two issues.  Not to mention the issues with proving XRP is a security.

So, they are doing the best they can but  lawyers have to play with the hand they are delt and honestly sometimes you get the Suicide Pass:


Well listen, that’s all the time I have this weekend for you. Thanks always for watching and we read comments for the first hour or two after videos so if you have a pressing legal question feel free to put it in the comments.

And finally, a big thank you and gratitude to you we received our 100k subscriber plaque from Youtube today.  It’s very cool with a K. We should mail this thing around like Flat Stanley – who wants it first?

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