The attempt by XRP token holders to enter as third party defendants in the case of the US Securities and Exchange Commission against Ripple may have ended.
According to court filings, federal judge Analisa Torres has denied a proposal submitted over the weekend on behalf of more than 6,000 XRP holders. The intervention proposal argues that the interests of token holders – in this case the XRP Army – were under-represented in the lawsuit against Ripple and its executives.
Torres denied the move “without prejudice”, which means that lawyers representing XRP investors can boast again in the future. The submission included a preliminary letter sent to the Securities and Exchange Commission or the SEC, giving them the opportunity to respond.
Under court rules, the SEC is entitled to respond to any such proposal for three business days, but it has required extension until March 22. It is not clear whether this extension, if allowed, would allow any legal team representing XRP token holders to submit a further proposal for intervention. If XRP investors are unable to extend their court time, they may not have a seat at the table in the SEC case against Ripple.
John Deaton of the law firm Deaton first filed for intervention on Sunday, later claim on the company’s website that XRP holders suffered $ 15 billion in losses following the SEC’s announcement of a lawsuit against Ripple. Price XRP fell more than 60% from $ 0.58 to $ 0.21 in December, but has since risen to $ 0.48 at the time of publication.
Last year, the SEC commissioned Ripple CEO Brad Garlinghouse and co-founder Chris Larsen to conduct an “unregistered, up-to-date offering of securities for digital assets” for their sale to XRP. Many cryptocurrencies since then announced that it would suspend trading for XRP or delete the token. In addition, MoneyGram has a global money transfer service ended its long-term partnership s Ripple.