A class action lawsuit has been filed against former SEC Chairman Jay Clayton and executive Bill Hinman for alleged mishandling of the Ripple (XRP) case. The lawsuit alleges that the two violated regulations in the XRP crackdown.
As it is known, the US SEC and Ripple case has been going on for about two years. Current decisions seem to go in favor of the defendants. In a major development, however, Clayton and Hinman were sued.
SEC officials allegedly conspiring to destroy Ripple
On April 11, 2022, Attorney Fred Rispoli, representing XRP investor Shannon O’Leary, filed a class action lawsuit against the former executives. Rispoli said that they have decided to stand up to the unfair interference by the authorities, which has damaged the finances of Ripple investors.
“We filed a class action lawsuit against Clayton and Hinman on April 11, 2022. This lawsuit has been filed due to unfair interference with the legitimate business prospects of ALL XRPL Network users on the XRPL Network. The lead plaintiff is my client Shannon O’Leary. What has been done is a stand against what these two people are doing to deliberately harm hundreds of thousands of people, not just in the United States but around the world.”
The lawsuit also alleges that Clayton and Hinman’s crackdown on Ripple was driven by the interests of third parties who benefited from Ripple’s shutdown.
The SEC’s lawsuit against Ripple has already resulted in thousands of Ripple community members filing multiple class action lawsuits against the SEC. But this latest class action marks the first time SEC officials have been individually targeted.
Ripple: A big threat to ETH?
A in the Twitter thread Rispoli said both SEC executives had conspiracies to bring down the XRPL network. He added that Hinman and Clayton knew that XRP was a major threat to their previous customers.
“These people with interests get what they want by intimidating others. We know very little of what Clayton and Hinman planned and did behind closed doors to destroy the XRP Ledger Network. These two knew that every user of the XRPL Network attaches great importance to the growth and development of the network. While these two were getting their salaries from taxpayers, the XRPL Network was a huge threat to their former clients and former employees.”
The lawsuit also alleged that authorities influenced the SEC to not investigate the similar Ethereum Network. However, it was also alleged that both officials were recruited directly by firms that invest heavily in the ETH network.
You can check the price movements here.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, KoinFinans and the author of this content cannot be held responsible for personal investment decisions.