Ripple’s Chris Larsen Gets Major Notice in SEC Lawsuit

In the latest development of the U.S. Securities and Exchange Commission (SEC) lawsuit against Ripple Labs, a critical notice has been issued to Chris Larsen, co-founder of the firm. The United States Court of Appeals for the Second Circuit highlighted that Larsen’s legal team has failed to submit an Acknowledgment and Notice of Appearance on time. However, this ignited a debate around the recent XRP appeal deadline, which the SEC apparently missed but denied to.

Court Notice for Ripple’s Chris Larsen

The court’s notice warned that if the required documents aren’t filed within 14 days, Larsen’s legal counsel may not be permitted to present oral arguments without the court’s permission. This notice, labeled as “default,” comes in the context of an appeal over Ripple Labs’ legal battle with the SEC.

The SEC is seeking to challenge the recent summary judgment that ruled on several key aspects of Ripple’s business, including XRP sales on exchanges and its distribution to employees. While the SEC has not appealed the court’s decision on disgorgement, the focus of this particular court notice is on Chris Larsen’s legal response.

NOTE: This has nothing to do with the SEC, or any supposedly late filing (which wasn’t late). This is directed at Larsen, who has not yet filed his appearance in this case.

— Marc Fagel (@Marc_Fagel) October 22, 2024

Former SEC attorney Marc Fagel weighed in on the matter, clarifying that this delay doesn’t involve the SEC itself but is specifically directed at Larsen’s legal team. “This has NOTHING to do with the SEC. It’s directed at defendant/appellee Larsen, whose counsel has not made a timely appearance in the matter,” Fagel explained in a post on X, formerly known as Twitter.

Deadline Confusion

Confusion surrounding the SEC’s involvement arose earlier when discrepancies were noted between the filing dates on the SEC’s Form C and the court’s timestamp. Many speculated that the SEC had missed its appeal deadline, as the form, which was supposed to be filed on October 16, didn’t appear on the court’s docket until October 17.

However, Fagel dismissed these concerns, noting, “The evidence shows the SEC Form C was prepared the morning of the 16th (when it was due). It wasn’t docketed until the following day, but nobody has any evidence that it wasn’t actually filed earlier.”

Additionally, an SEC spokesperson confirmed that the agency had met its filing deadline, stating that the delay in public access to the document did not mean it was late. Journalist Eleanor Terrett reported that the SEC assured her that the form had been submitted on time and that it would be publicly available soon.

Also Read: Ripple Faces Default Notice in SEC Appeal Amid Filing Delay