• A recent ruling by a US District Judge contested Judge Analisa Torres’ decision in the Ripple case.
• Judge Rakeoff’s 50-page Opinion and Order found the SEC’s arguments plausible, indicating that the TerraUSD (UST) and LUNA sale potentially violated U.S. Securities law.
• During this ruling, Judge Rakoff also expressed disagreement with Judge Analisa Torres regarding the recent Ripple v. SEC case decision, which could put Ripple’s partial victory against the SEC in jeopardy.

Recent Court Ruling Contests Ripple Case Decision

A recent ruling by a US District Judge contested Judge Analisa Torres’ decision in the Ripple case. On July 31, there was a significant development as U.S. Judge Jed Rakoff from the Southern District of New York denied Terraform’s attempt to dismiss the fraud charges filed by the U.S. Securities and Exchange Commission (SEC). During this ruling, Judge Rakoff also expressed disagreement with Judge Analisa Torres regarding the recent Ripple v. SEC case decision.

Howey Test & Distinctions Between Institutional & Retail Investors

On July 18, lawyers representing Terraform Labs and its CEO Do Kwon in their SEC lawsuit filed a motion to dismiss , citing Ripple’s partial victory against the financial regulator as the basis for their arguments – namely that retail sales of XRP tokens did not breach US securities law, but only institutional sales according to the Howey Test would be considered an offense under US law . The motion was met with a swift response from the SEC , urging court to disregard rulings in favor of Ripple as they were deemed “wrongly decided” .

Judge Rakeoff Sides With The SEC

Judge Rakeoff has now sided withthe SEC , and Terraform Labs and Do Kwon will face fraud allegations by commission . Ina 50-page Opinion and Order document , judge Rakeoff stated thattheSEC’sarguments presented a plausibleclaim thatthe sale ofTerraUSD(UST)andLUNAamong others viol atedUS Securitieslaw .TheU Sjudge citedtherulingintheripple cases expressing strong disagreement about distinctions betweeninstitutionalandretailinvestors being acceptedbytheHoweyTest .

Ripple Victory Against The SEC In Jeopardy?

After therulinginSECvTerraform et alcase thereissignificant speculationregarding implicationsofRipplespartialvictoryagainstthefinancialregulatorbeingino jeopar dy .

Conclusion

Thisrecentrulinghas putripple’spartialvictoryagainsttheSECintoquestion ,asjudgerakoffsidedwiththeseclarge s offraud leviedagainstterrafor mlabs&DoKw on whichwerebasedontheSEC‘ argumetspresentedinaplausibleclaimindicatingthatviolationofUSSecuritieslawhadoccuredinthesaleofTerraUSD&LUNAtokens .