Both the legal counsel for Ripple, Stuart Alderoty, and the chief technology officer (CTO) of the company, David Schwartz, have gone public with their criticism of the action taken by the SEC.

SEC On The Verge Of Abitrariness

The Securities and Exchange Commission (SEC), which is commonly referred to as "the cop of the crypto space," has continued to live up to its name by the manner in which it persistently seeks out new prospects to probe and investigate. This is one of the ways in which the SEC continues to live up to its reputation as "the cop of the crypto space."

According to reports, the Securities and Exchange Commission (SEC) has broken a staggering record this year by handing out fines and compensations totaling $6.4 billion to investors on their behalf.

Gary Gensler, who serves as the chairman of the company, has voiced his satisfaction with the recent advancements publicly. On the other hand, it would appear that the major actors in the cryptocurrency business, and in particular the executives of Ripple, are unwilling to relocate.

According to Stuart Alderoty, who serves as legal counsel for Ripple, the actions taken by the SEC are pointless and, if anything, amount to a flagrant display of abuse of power. Alderoty holds the position of legal counsel for Ripple.

He has made his disapproval of the SEC's immoral practices and its role in essentially bringing BlockFi to an end known to the general populace by going public with his criticism of the organization.

The SEC was responsible for the demise of BlockFi.

BlockFi was one of the first companies in the cryptocurrency industry to feel the negative effects of the fall of the popular cryptocurrency exchange FTX. In November, the cryptocurrency lending company was forced to temporarily halt the processing of withdrawal requests.

After conducting its investigation, the Securities and Exchange Commission (SEC) came to the conclusion that the cryptocurrency company in question had breached the registration and antifraud provisions of the Securities Act as well as the registration provisions of the Investment Company Act of 1940 (ICA). As a result, BlockFi was subject to a financial penalty.

This has been criticized by the legal counsel for Ripple, who took to his Twitter page to assert that nothing was actually registered in the agreement that BlockFi and the SEC came to.

According to him, BlockFi lacked the financial resources necessary to make payments, and it appeared that the cryptocurrency lending company had gone to FTX; as a result, BlockFi was forced to halt withdrawals following the collapse of FTX.

According to him, the Securities and Exchange Commission (SEC) has been successful in defrauding the investors that it was ostensibly established to protect in the first place.