Lawyer disagrees with concerns about Ripple’s SEC penalty. Here’s why

XRP lawyer Bill Morgan recently downplayed concerns about Ripple’s potential SEC penalty. His statements come amid increasing discussions about the SEC’s recent response to Ripple’s letter regarding the Terraform Labs consent judgment.

Despite rumors of Ripple’s financial threat, Morgan emphasized the company’s solid acquisitions and financial strength, dismissing claims of impending bankruptcy.

XRP Lawyer Allayed Ripple’s Financial Concerns

Concerns have been raised about Ripple’s financial stability due to a potential high fine from the SEC. A social media user recently suggested that Ripple could face bankruptcy due to penalties imposed by the SEC.

However, XRP lawyer Bill Morgan debunked these claims on Platform X. He specifically noted Ripple’s strong financial position, highlighted by its recent acquisitions. Notably, Morgan argued:

You think a company that just acquired two large trust companies for hundreds of millions of dollars in the last 12 months can’t pay $100 million plus fines?

Meanwhile, Ripple’s financial moves, such as the acquisition of Metaco last May and the recent acquisition of Standard Custody, illustrate its strong economic health. It is worth noting that last year Ripple acquired Metaco for $250 million. In other words, these strategic acquisitions, XRP’s lawyer stressed, expand Ripple’s digital asset custody capabilities, strengthening its market position despite regulatory challenges.

However, the SEC’s response to Ripple’s letter regarding the Terraform Labs consent judgment has been a focal point of the ongoing lawsuit. The regulator said Ripple’s current on-demand liquidity (ODL).

sales practices bear striking similarities to past violations.

Also Read: XRP Price Risk Drops to $0.42 as SEC and Lawyers Challenge Fines and Court Orders

Ripple market resilience

Ripple’s market strategy and financial activities suggest that it is a company ready to face legal challenges. Despite the SEC’s claims that Ripple’s ODL sale is reminiscent of previous violations, XRP’s lawyer stressed that current data does not conclusively support these claims.

Ripple’s proactive market maneuvers, including significant acquisitions, underscore its resilience and willingness to face potential penalties. Additionally, the acquisitions of Metaco and Standard Custody reflect Ripple’s commitment to expanding its position in digital asset custody.

However, amid growing concerns over Ripple’s ongoing lawsuit against the SEC, the price of XRP recently dropped to as low as $0.46, indicating investors’ waning appetite for risk.

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