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A new set of developments have emerged from the ongoing legal tussle between the crypto financial firm Ripple and the Securities and Exchange Commission. The BlockFi, a cryptocurrency lender has become another firm to fall due to the FTX collapse. BlockFi filed for chapter 11 bankruptcy protection due to extensive exposure to The US Securities and Exchange Commission (SEC) 's legal war with Ripple Labs isn't over yet. According to a report, the periods of Nov. 30 and Dec. 5 could be the As the legal battle between Ripple Labs and the U.S. Securities and Exchange Commission (SEC) enters the home stretch, the fintech is throwing one more punch. As NewsBTC The executive opined on Twitter that the SEC “may have” deliberately made BlockFi “so weak” financially that it had “no choice” other than storing crypto at FTX to Stuart Alderoty, Ripple’s General counsel has slammed the U.S. Securities and Exchange Commission “SEC” for its alleged role in bringing BlockFi to its knees. In a Ripple's aldetory has hit back at the SEC, blaming the body for BlockFi's demise. According to JoelKatz, SEC's fines caused BlockFi to fall deep into debts with

Ripple Execs Highlight SEC's Role in BlockFi Collapse: A Deep Dive

A new set of developments have emerged from the ongoing legal tussle between Ripple Labs and the Securities and Exchange Commission (SEC). As the legal battle between Ripple Labs and the U.S. Securities and Exchange Commission (SEC) enters the home stretch, the fintech is throwing one more punch. Ripple's General Counsel, Stuart Alderoty, has slammed the SEC for its alleged role in bringing BlockFi to its knees.

BlockFi, a cryptocurrency lender, has become another firm to fall due to the FTX collapse. BlockFi filed for Chapter 11 bankruptcy protection due to extensive exposure to FTX. However, Ripple execs are now pointing the finger at the SEC, alleging that its actions significantly contributed to BlockFi's financial vulnerability.

Did the SEC's Actions Weaken BlockFi?

NewsBTC reports that Ripple's executive team is actively questioning the SEC's influence on BlockFi's downfall. According to reports, the periods of Nov. 30 and Dec. 5 could be crucial in understanding the situation. The executive opined on Twitter that the SEC “may have” deliberately made BlockFi “so weak” financially that it had “no choice” other than storing crypto at FTX to generate revenue. This assertion raises serious concerns about the SEC's regulatory approach and its potential unintended consequences.

Ripple's Alderoty Blames the SEC

Stuart Alderoty, Ripple’s General Counsel, has been particularly vocal. He argues that the US Securities and Exchange Commission's legal war with Ripple Labs isn't over yet and that the SEC’s actions played a significant role in BlockFi's financial distress. In a recent statement, Ripple's Alderoty has hit back at the SEC, blaming the body for BlockFi's demise.

SEC Fines and BlockFi's Debt: A Connection?

JoelKatz, another key figure at Ripple, supports Alderoty's claims. According to JoelKatz, SEC's fines caused BlockFi to fall deep into debts. This perspective suggests that the regulatory penalties imposed by the SEC may have contributed to BlockFi's precarious financial position, ultimately pushing them towards reliance on FTX and subsequent bankruptcy.

The Broader Implications

The Ripple-SEC battle continues to unfold, but the implications of the BlockFi situation extend far beyond these two entities. It raises important questions about the SEC's role in regulating the crypto industry and the potential for regulatory actions to inadvertently destabilize companies and the market as a whole. The scrutiny on the SEC's handling of crypto firms is only likely to intensify as the Ripple case progresses.

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