In a surprising turn of events, Ripple Labs CEO, Brad Garlinghouse, has hired a new defense attorney, Rahul Mukhi, in the ongoing XRP lawsuit. Mukhi, from the law firm Cleary Gottlieb Steen & Hamilton LLP, will specifically represent Garlinghouse. This unexpected move has caused ripples in the crypto ecosystem, raising questions about what implications this unique representation might have.
The XRP lawsuit has witnessed significant shifts in attorney representations from the United States Securities and Exchange Commission (SEC), Ripple Labs, and the defendants involved. Earlier this year, two lawyers representing the SEC left the team, leaving a gap that needs to be filled. Ripple, however, has assured that the departure of its lawyers will not affect its argument regarding the status of XRP. Mukhi, renowned for his expertise in complex litigation, enforcement, and investigations, joining Garlinghouse’s defense team could strengthen their case against the market regulator.
Many in the digital currency community anticipate that the verdict of the SEC’s case against Garlinghouse and Chris Larsen, the co-founder of Ripple Labs, will lead to a dismissal. This expectation stems from Judge Analisa Torres ruling that the trading of XRP on secondary marketplaces does not qualify as securities. Regardless of the outcome, it is likely that the Ripple executives will emerge unscathed or potentially face minimal civil penalties related to the institutional sales aspect addressed in the current ruling.