Ripple's ongoing legal battle with the U.S. Securities and Exchange Commission (SEC) has taken a new twist. Jimmy Vallee, founder of Valhil Capital and a strong supporter of XRP, is now demanding $500 billion in compensation for XRP holders affected by the SEC's lawsuit.
Jimmy Vallee, founder of Valhil Capital and a known supporter of XRP, is demanding $500 billion in compensation from the U.S. Securities and Exchange Commission (SEC) for XRP holders. His claim follows the SEC’s lawsuit against Ripple, which began in December 2020, and saw the agency accuse Ripple of selling XRP as an unregistered security.
The lawsuit, which triggered a significant price decline and resulted in numerous exchanges delisting the token, has left many XRP investors with sinking assets. In a letter to the SEC, which was also viewed by The Crypto Basic, Vallee stated that the agency’s actions were unjust and that it failed to protect retail investors, which is exactly what it’s supposed to do.
According to Vallee, the SEC’s move was never about protecting investors but rather about asserting regulatory control over the crypto space. This strategy, he claims, led to billions of dollars in losses for innocent investors who trusted the system.
“The SEC’s actions have caused untold financial hardship and distress to countless individuals and families who invested in XRP in good faith,” Vallee wrote. “It is unconscionable that the SEC can act with such impunity, leaving a wake of devastation in its wake.”
In his letter, Vallee also proposed a mechanism for distributing the funds to XRP holders. He suggests that any XRP holder who possessed the token before the lawsuit was filed should be eligible for compensation, which could be paid out in tranches over a period of five years.
The XRP community has largely reacted with positivity to Vallee’s move, with many taking to social media to praise his bold stance. However, some have questioned whether such a massive payout is even realistic. After all, $500 billion is a significant sum,one that would likely make it the largest investor payout in U.S. history.
Additionally, some legal experts caution that while the demand is loud, the chances of the SEC agreeing to such a settlement are slim. Still, Vallee’s push reignites the conversation around regulatory accountability and the real-world impact of enforcement actions on average investors.
This saga is still unfolding, and it remains to be seen what the next chapter will hold for XRP holders and the broader crypto space. But one thing is clear: the SEC’s actions have far-reaching consequences, and it’s important to hold those in power accountable for their decisions.
