Ripple, the cryptocurrency firm, has bolstered its legal team in the ongoing battle with the U.S. Securities and Exchange Commission (SEC). The company recently hired renowned attorney, Rahul Mukhi, to represent Ripple and its CEO, Brad Garlinghouse. The news was revealed by James K. Filan, a defense lawyer and former federal prosecutor, on Tuesday.
Mukhi brings a wealth of experience to the case. From 2010 to 2016, he served as an Assistant United States Attorney and later became a counsel and partner at international law firm Cleary Gottlieb Steen & Hamilton LLP. His past cases have involved financial and tax fraud, public corruption, cybercrime, money laundering, and organized crime.
The legal battle between Ripple and the SEC commenced in December 2020 when the SEC accused Ripple of trading billions of dollars worth of XRP as a security without registering with the Commission. Since then, the case has seen numerous developments.
In July 2023, Ripple secured a partial win when a U.S. court ruled that most of its XRP sales did not constitute an offer of investment contracts. However, the SEC formally appealed this decision at the start of September 2023, indicating that the battle is far from over.
While it is not uncommon for co-defendants in a case to have different attorneys representing their interests, some have questioned why Garlinghouse specifically hired Mukhi. However, this move can be seen as strategic given Mukhi's extensive experience in government and regulatory investigations.
Ripple's legal team has undergone changes recently due to Lisa Zornberg's withdrawal following her departure from Debevoise and Plimpton LLP. Several attorneys from the firm continue to represent Ripple.
Ripple's CEO Brad Garlinghouse and Executive Chairman Chris Larsen are named as co-defendants in the Commission’s case against Ripple. Despite the case moving forward, there is speculation that it will likely not go to trial, especially with Ripple’s founders involved as co-defendants. Pro-XRP legal expert Fred Rispoli believes that the SEC only named Ripple's founders to pressure the company into a weak settlement position.
Former SEC Chair Jay Clayton and former SEC Director William Hinman have been mentioned in relation to the case. Hinman's cross-examination would be of “epic proportions” if the SEC’s case against Ripple's founders were to go to trial, according to pro-XRP lawyer John Deaton.
As the legal battle continues, Ripple's XRP price has reclaimed $0.5, according to data from Tradingview.com.
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