Jimmy Vallee Seeks $500B Restitution for XRP Holders, Arguing SEC's Lawsuit Caused Massive Losses and Stunted XRP's Price Potential

Vallee's Crypto Justice Coalition pushes for XRP investor compensation, bypassing courts to negotiate alternative legal solutions

Jimmy Vallee, founder of Valhil Capital, is seeking a staggering $500 billion in restitution for XRP holders. This demand comes in the wake of the U.S. Securities and Exchange Commission’s (SEC) 2020 lawsuit against Ripple, which had a devastating impact on the crypto community.

The SEC’s suit, which alleged that XRP sales were unregistered securities offerings, triggered a selloff that saw XRP’s price plummet by nearly 75%. To add to the woes, several exchanges delisted the token, causing further damage to its market position. Valhil Capital maintains that without the SEC’s involvement, XRP would have followed a natural bull cycle, similar to Bitcoin (BTC) or Ethereum (ETH).

According to Valhil Capital’s analysis, if left undisturbed, XRP’s price could have easily surpassed its previous all-time high of $3.84, potentially reaching $10 to $12 in 2024. However, the SEC’s lawsuit and subsequent actions truncated this price recovery.

In a move to help those affected, Vallee has launched the Crypto Justice Coalition, aiming to secure financial compensation for investors who suffered losses due to the SEC’s actions. Vallee claims that over 76,000 XRP holders, who were represented by attorney John Deaton during the Ripple case, should be eligible to receive a portion of the proposed $500 billion.

Following the SEC’s decision to drop its lawsuit against Ripple, the call for compensation has become even more urgent. Vallee has no intention of pursuing compensation through the federal court system, citing concerns about potential bias within the institutions. Instead, he is exploring alternative legal avenues and the possibility of engaging in negotiations with regulators to reach a suitable resolution.

Vallee’s proposal for $500 billion in restitution is based on the significant market opportunities that were lost as a result of the SEC’s actions. Currently, XRP’s market cap stands at approximately $140 billion. However, if XRP’s price had recovered as Vallee projects, with the token valued at $8 to $10, the market cap would have soared to over $500 billion.