A strange file has just been added to the case files between the SEC and Ripple, "freedom for the people of America"

A non-party has submitted an emergency letter on April 2 to Federal Judge Analisa Torres, who is overseeing the case of the Securities and Exchange Commission (SEC) against Ripple Labs. The letter claims to have “decisive evidence” to address relevant questions in the lawsuit.

FOX Business reporter Eleanor Terrett first reported on the “strange filing” on social media platform X late Wednesday. She noted that Justin W. Keener, who filed the letter, stated that his plea was a “request for an urgent presentation of decisive evidence favoring the defendant and supporting the freedom of the people of the United States.”

In the letter, Keener does not explain what this “decisive evidence” is, other than vaguely referring to the “material investment contracts” that he has gathered. He describes himself as a concerned citizen regarding the lawsuit and has no financial stake in the case, claiming that his purpose is to expose what he sees as excessive government intervention in the SEC’s legal strategy.

Who is Justin Keener?

According to a report published in December 2022 on the SEC’s website, Keener was sued by the financial regulator in 2020, accused of acting as an unregistered broker while trading hundreds of millions of low-priced shares.

A federal court with Judge Beth Bloom of the United States District Court for the Southern District of Florida has ordered him to pay more than 10 million USD in fines.

With the final ruling, the court ordered Keener to pay a total of 10.2 million USD, including 7.79 million USD in restitution, 1.43 million USD in interest, and 1.03 million USD in civil penalties.

The ruling also imposes a five-year ban on Keener from participating in low-priced stock offerings. Additionally, Keener is required to relinquish certain held shares and conversion rights related to existing convertible securities.

His request to the court seems to be an effort to restore his public image, so that supporters can see that his record is related to the “unfair” actions from the SEC.

Keener’s letter argues that the proposed $2 billion fine by the SEC is excessively high, unfair, and threatens U.S. innovation. He points to the summary judgment in July 2023, in which the court found that Ripple’s direct sales of XRP to institutional investors previously violated Section 5 of the Securities Act, but also ruled that other sales, such as programmatic sales, did not violate.

“Ripple stated that they have ceased selling XRP to institutions in the United States after the SEC filed a lawsuit. These events clarify that the violations are limited in scope and duration, and that there are no continuous violations of securities laws. Importantly, the SEC has never accused Ripple of fraud or misrepresentation.”

He also spoke about previous SEC settlements related to much higher fundraising amounts but with lower penalties, such as: 24 million USD for Block.one, 18.5 million USD for Telegram, 5 million USD for Kik, and 21 million USD for Genesis.

“Due to the absence of fraudulent behavior and the limited scope of violations, the $2 billion penalty seems to be designed for punishment rather than remediation. This may violate the Supreme Court’s stance on civil penalties, which are supposed to be remedial in nature.”

XRP continues to face difficulties after the battle with the SEC

Meanwhile, Ripple’s native token XRP has yet to record any positive price action. Currently, it is trading around $2.09, up slightly 2% in the past 24 hours, still well below the moving average, with signs of an increasing distribution phase.

According to technical analysis from TradingView, momentum indicators confirm a downward trajectory, with the Relative Strength Index (RSI) falling into the danger zone of oversold at 38.6 and the MACD line crossing downwards, signaling no relief from the bulls.

Source: TradingViewShort-term traders are monitoring the support level of $2.01; if broken, this level could cause the price to drop to $1.97. For any bullish recovery to form, XRP needs to break above $2.16 with the support of significantly increased trading volume.

Market followers are waiting for the best entry point for a Short position within the resistance range of $2.16 - $2.27, with a stop-loss recommended above $2.27.

You can check the price of XRP here.

Disclaimer: This article is for informational purposes only and is not investment advice. Investors should do thorough research before making decisions. We are not responsible for your investment decisions.

• XRP maintains support at $2 as the chart shows a 73% increase.
• Ripple unlocks 1 billion USD worth of XRP as a downtrend is forming
• The SEC meets with BlackRock and the Crypto Council to discuss regulations on cryptocurrency ETFs.

Viet Cuong

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