Attorney John Deaton, who is defending the owners of the XRP cryptocurrency, said that if Ripple Labs had hired the law firm Sullivan & Cromwell, where former SEC Chairman Jay Clayton now works, the company could have avoided years of litigation with the regulator.
Deaton is confident: Clayton would have declined to take enforcement action against his law firm’s clients. However, Ripple did not address 1Sullivan & Cromwell. As a result, the company’s legal fees totaled more than $200 million, with more spending ahead, Deaton laments.
The lawyer cited the example of Etherium co-founder Joseph Lubin, who previously used the services of Sullivan & Cromwell. Hinman interacted with Lubin on Clayton’s recommendation. Clayton repeatedly asked Hinman: How are his meetings with Lubin and Consensys going? Ask Hinman how many times Clayton has inquired of him about other meetings unrelated to S&C clients,” Deaton wrote.
Recently, District Judge Analisa Torres allowed the SEC to appeal the decision on the status of XRP. Torres previously ruled that XRP sold on cryptocurrency exchanges are not considered securities.