• Attorney John Deaton cited the Celsius case as an example, arguing XRP holders did not suffer financial losses like the lenders’ creditors.
• Deaton explains that the bankrupt crypto lender’s case makes it clear there is no horizontal commonality with the Ripple ruling under the existing law.
• Deaton assuages XRP holders’ concerns and explains that Judge Analisa Torres’ decision in the SEC vs Ripple case is sound.

Bankrupt crypto lender Celsius’ progress in bankruptcy court made the headlines last week as the firm finalized its strategy to repay creditors. Pro-XRP attorney John Deaton cited the Celsius bankruptcy case to explain that, unlike the bankrupt crypto lender’s case, XRP holders or traders did not lose their funds to Ripple, since many were unaware of the firm’s existence.

Deaton believes several XRP holders acquired the token for its relevance and high market capitalization when compared to other altcoins. This argument weakens the Securities and Exchange Commission's (SEC) narrative of “common enterprise” and secondary market sales of XRP tokens are unlikely to be considered as securities transactions.

Why Celsius bankruptcy does not share common ground with SEC vs Ripple lawsuit

Pro-XRP attorney John Deaton commented on the recent developments in the bankruptcy case of Celsius. The bankrupt crypto lender reached a settlement after year-long proceedings in the court.

Celsius now has two settlements that are likely to make it possible for the lender to begin reimbursing creditors 105% of their claims. To find out more about the lawsuit and the court ruling check this post.

The US financial regulator Securities and Exchange Commission (SEC) revealed its plans to appeal the ruling of Judge Analisa Torres in the SEC vs Ripple lawsuit in the Second Circuit. This increased the concerns among XRP holders and the community.

Deaton addressed both the concerns arising from the recent Celsius lawsuit and the SEC’s plan to appeal Judge Torres’ ruling in his tweet:

Deaton explains that, unlike Celsius, XRP holders did not lose their funds to payment remittance firm Ripple. Moreover, Deaton argues that most early traders were unaware of the relationship between XRP and Ripple, and the purchase of the token was made on cryptocurrency exchange platforms. These facts, according to Deaton, shed light on why the US SEC’s argument of “a common enterprise” is flawed and an appeal is unlikely to affect the fate of XRP holders.

According to Judge Analisa Torres’ ruling, XRP token is not an investment contract or security in open-market sale transactions. The pro-XRP attorney explains this fact is likely to stay true and the ruling is unlikely to be overturned, even following the appeal by the regulator.

XRP is trading at $0.6985 at the time of writing.