XRP lawyer John Deaton has initiated a suit against William Sarris, accusing him of years-long securities fraud, significantly impacting retail investors.
Allegations Against William Sarris
The lawsuit alleges that Sarris engaged in the sale of shares of private companies through Linqto's platform without appropriate registration and disclosures. He is accused of acting as an unregistered broker-dealer, violating SEC and FINRA rules. The filing mentions internal legal memos from 2023 and 2024, indicating potential violations of federal securities laws.
John Deaton's Objectives in the Lawsuit
Deaton clarified that the legal action is directed solely at Sarris and not constrained by any bankruptcy protections. This implies the lawsuit can proceed regardless of Linqto's financial standing. The filing emphasizes that any financial recovery from liability insurance or settlements will be directed toward compensating harmed retail investors. Deaton aims to hold Sarris personally accountable for the alleged misconduct.
Ripple's Developments Amid Lawsuits
Amid the lawsuit from Deaton, Ripple CEO Brad Garlinghouse announced a strategic partnership with global custodian bank firm BNY Mellon. This partnership aims for deeper integration of blockchain-driven payment solutions with conventional banking systems. Additionally, Ripple's stablecoin RLUSD, pegged to the U.S. dollar, has surpassed a market capitalization of half a billion dollars.
Deaton's case against Sarris highlights the need for compliance with securities trading regulations and may have serious implications for all market participants, while Ripple continues to grow amid legal pressures.
