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Ripple files a response to SEC’s ‘Client Privilege’ claims ─ what’s different this time

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Ripple files a response to SEC’s ‘Client Privilege’ claims ─ what’s different this time

The ever-lasting lawsuit between the fintech firm, Ripple and U.S. regulatory watchdog continues to take different turns. One of the most elaborate tussles has been regarding William Hinman’s 2018 speech. A talk about crypto securities was delivered by the SEC’s former Director of the Division of Corporation Finance.

You ask whether this was an expression of the official’s views or actual agency guidance? Well, note that Ripple Labs is determined to settle this matter with the latest filing.

Laying down reasons

#XRPCommunity #SECGov v #Ripple #XRP Ripple Defendants file Response to SEC Attorney Client Privilege Claims regarding Hinman Speech and Notes https://t.co/iI3OGv3yW4

— James K. Filan 🇺🇸🇮🇪96k+ (beware of imposters) (@FilanLaw) May 13, 2022

On 13 May, Ripple Defendants filed a response to SEC Attorney and Securities and Exchange Commission’s 29 April 2022 assertion. As per the assertion, the SEC refused to produce at the court or Defendant, citing deliberative process privilege [DPP] and attorney-client privilege.

James Filan, a famed attorney highlighted this development in the aforementioned tweet. Defendant insisted that the SEC should be compelled to surrender the documents. Later addressed key reasons in the said filing.

Addressed to Judge Sarah Netburn, the Ripple defense team wrote that the SEC claims were wrong for the following reasons. ‘The record, in this case, demonstrates that Mr. Hinman delivered his speech in his personal capacity.’

However, Defendant argued that Hinman, entitled to receive legal advice from his colleagues about his personal opinion, won’t lie within the scope of the attorney-client relationship. The communications at issue involved no confidential information concerning the agency.

The filing added that even if the SEC can establish elements of attorney-client privilege in a bid to keep the documents protected, the agency would identify a privileged claim that it lacks standing to assert because the privilege would belong to Hinman.

“If the Court finds an attorney-client relationship between Mr. Hinman and the SEC staff to comments on a draft speech given in his personal capacity.

Defendants request that the Court review the remaining documents in camera to determine whether they include legal advice or confidential information protected by the privilege.”

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SEC is now due to file its response on 18 May 2022.

#XRPCommunity #SECGov v. #Ripple #XRP In a Text Only Order, Magistrate Judge Netburn has granted the SEC’s request to file a reply brief in connection with the SEC’s attorney-client privilege claims regarding the Hinman speech documents. The SEC’s reply is due by May 18, 2022.

— James K. Filan 🇺🇸🇮🇪96k+ (beware of imposters) (@FilanLaw) May 4, 2022

This is odd 

Overall, the SEC had constantly fought to protect Hinman’s documents for several reasons, including the basis of Deliberative Process Privilege (DPP). Despite the court’s rejection, the SEC sought a new reason to shield the agency from surrendering Hinman’s documents to Ripple.

Needless to say, Ripple and the team must be running thin on patience. The XRP community too, felt the same given the comments. But, here’s an interesting reaction. Attorney Jeremy Hogan, a partner at the Hogan & Hogan law firm, found it odd that Hinman would receive legal advice from SEC’s lawyer for his personal opinion.

Solomon also plays a veteran move in responding to the SEC and argues that ONLY Hinman has the standing to even raise the privilege (and not the SEC).

It’s good legal work to take an issue down to a basic premise – is this even the proper party to object?

Hence, King Solomon. pic.twitter.com/NyqXdlx81E

— Jeremy Hogan (@attorneyjeremy1) May 14, 2022

Did it help the native token in any way? Well, Yes and no. On 13 May, XRP spiked by 9.81%. However, at press time, XRP suffered a fresh 9% setback as it traded around the $0.4 mark as per CoinMarketCap.

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Luna Foundation Guard Discloses Usage Of Bitcoin Reserves

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Luna Foundation Guard Discloses Usage Of Bitcoin Reserves

The Luna Foundation Guard, the entity in charge of safeguarding the peg of UST, the stablecoin of the Terra ecosystem, has revealed how it used the available Bitcoin reserve before the recent debacle involving the Terra ecosystem. The organization sold part of the bitcoins owned directly, while another part was traded on different dates to try and stabilize the value of UST. The reserve was comprised of more than 80,000 BTC.

Luna Foundation Guard Clarifies Reserve Movements

The Luna Foundation Guard (LFG), the organization tasked with safeguarding the dollar peg of UST, the algorithmic stablecoin of the Terra ecosystem, has broken its silence to explain the use of the assets it had under its custody. The institution had amassed more than 80K BTC, which was to be used in case of market imbalances affecting the value of terrausd (UST).

According to reports on social media, the foundation spent almost all of its BTC reserves in a failed attempt to save UST. This was made in three different operations. In the first one, LFG sold 26,281,671 USDT & 23,555,590 USDC for an aggregate of 50,200,071 UST, in what was the first defensive transaction against the depeg incident.

Also, the LFG stated it:

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Transferred 52,189 BTC to trade with a counterparty, net of an excess of 5,313 BTC that they have returned, for an aggregate of 1,515,689,462 $UST.

However, the company did not identify the counterparty involved in this transaction.

Last Measures

Even with the intervention of the LFG, the peg was not restored. LFG declares that Terraform Labs exchanged the last of the BTC reserve on May 10, when UST’s market price had touched $0.75. This transaction involved the sale of 33,206 BTC for an aggregate of 1,164,018,521 UST.

The Luna reserve is now comprised of only 313 BTC, meaning that most of the BTC owned by the organization were deployed in the defense effort. Other cryptocurrencies in the reserve, including 39,914 BNB and 1,973,554 AVAX were not used and still are in the possession of the organization. However, there is no clear answer as to how these will be used in the future.

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The statements from LFG help to clarify how the Terra depeg incident happened, and how these funds were used. An analysis of the transactions conducted earlier by Elliptic, a blockchain analytics and compliance company, found that the majority of the funds were sent to two exchanges: Binance and Gemini. However, the company declared that it was “not possible to trace the assets further or identify whether they were sold to support the UST price.”

What do you think about the report on the use of Terra’s BTC Reserve? Tell us in the comments section below.

Sergio Goschenko

Sergio is a cryptocurrency journalist based in Venezuela. He describes himself as late to the game, entering the cryptosphere when the price rise happened during December 2017. Having a computer engineering background, living in Venezuela, and being impacted by the cryptocurrency boom at a social level, he offers a different point of view about crypto success and how it helps the unbanked and underserved.

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Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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Portugal To Tax Cryptocurrency Income According To Minister Of Finance

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Portugal To Tax Cryptocurrency Income According To Minister Of Finance

Portugal, one of the countries considered a crypto tax haven due to its absence of crypto-related taxation, is preparing to change this policy. Fernando Medina, minister of finance of Portugal, stated that the country is working on a framework to allow the taxation of cryptocurrency income gains following the principles of “justice” and “efficiency,” and declared that there cannot be gaps for any income gains to be obtained without taxation.

Portugal to Tighten Cryptocurrency Taxation Policy

Portugal, one of the countries that has been touted as a crypto haven due to the absence of taxation in this regard, is working on the establishment of laws that will allow it to tax these digital assets. The statements on the subject were made by the minister of finance of the country, Fernando Medina, during a state budget discussion.

Medina explained:

Several countries are building their models regarding this matter and we are going to build ours. I do not want to commit myself to a date at this moment, but we will adapt our legislation and our taxation.

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The government had already given signs of its future direction regarding cryptocurrency taxation. The Ministry of Finance asked the Portuguese Tax Authority to study how crypto assets were taxed in other regions in 2021 “in order to propose an adequate tax framework for these new instruments, taking into account the necessary balance between the fair distribution of income and wealth and the attraction of foreign investment.”

Models Still Not Decided

While the models by which cryptocurrency gains will be taxed are still unclear, Medina stated that these would be set up following the principles of “justice” and “efficiency,” aiming for a tax system that would not scare cryptocurrency investments out of the country. Medina declared this system should make taxation “adequate,” but not of an “exceptional character that ends up reducing revenue to zero, which is contrary, in fact, to the objective for which it exists.”

However, he was firm in the belief that cryptocurrency should be taxed eventually, stating that there could not be “gaps that cause there to be capital gains in relation to the transaction of assets that do not have a tax.”

Recently, cryptocurrencies are starting to be used as a means of payment in real estate transactions in Portugal. On May 8, the reported first transaction of this kind happened in the country, when an apartment in Braga was sold for 3 BTC.

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What do you think about the statements on crypto taxation made by Portugal’s minister of finance? Tell us in the comments section below.

Sergio Goschenko

Sergio is a cryptocurrency journalist based in Venezuela. He describes himself as late to the game, entering the cryptosphere when the price rise happened during December 2017. Having a computer engineering background, living in Venezuela, and being impacted by the cryptocurrency boom at a social level, he offers a different point of view about crypto success and how it helps the unbanked and underserved.

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Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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Why The Sandbox land sales will have little to no effect on SAND’s recovery

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Why The Sandbox land sales will have little to no effect on SAND’s recovery

Most of the DeFi tokens in the crypto space earn their value from the function and success of the protocol they stem from. Naturally, any change in the protocol’s ecosystem is bound to have a ripple effect on the token as well. However, that does not seem to be the case with The Sandbox.

Out of The Sandbox

While the Metaverse is the next step in digital communication and representation, it is safe to say that it needs a little more time to be a perfect iteration.

This is why its mainstream adoption isn’t spreading like wildfire at the moment. Individuals and companies, including brands, are still trying to make sense of how to use it best to their advantage.

Quite recently, virtual events have become an effective method of promotion for brands and RLTY is making that easier for companies to do that.

Announcing the entry into The Sandbox today, RLTY will be opening the doors for brands, artists, and businesses to launch virtual events in The Sandbox easily.

Occupying a 6X6 LAND, RLTY will utilize that space to host self-produced events in partnership with major festivals, fashion shows, and more.

However, whether or not this will reinvigorate interest is a different question since The Sandbox hasn’t particularly been noticing a lot of demand recently.

Down to $2,851, the cost of a plot of LAND is declining every month, which has caused the total sales volume to be reduced to chump, raking in just $11.1 million as of April 2022 and just $4 million as of May 2022.

The lack of volume is also the consequence of low sales, with the month of April witnessing the sale of 2,906 plots of LAND.

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Discouraged by this, a lot of unique LAND owners pulled out of the market, vacating the spot for 2.7k new investors.

But their actions are justified since even in the spot market, investors have been suffering at the hands of bears, conducting transactions in losses for almost four months now.

In addition to the aforementioned data, 13 May turned out to be the most uneventful day for SAND holders as over 83.71 million SAND worth $108.81 million fell into losses.

Thus, investors and participants are both going to wait a while to see if the tide changes and if they are able to make profits with The Sandbox.

Aaryamann is a freelance crypto journalist working with AMBCrypto. He is currently investing his time in the crypto-space. He has a keen interest in DeFi, the ever-expanding possibilities of blockchain technology, as well as the political impact they would have.

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