XRP Returns to sub-$0.40 ahead of Ripple’s Friday Court Date

Former SEC Director William Hinman Is a Central Figure for Ripple

Last year, FX Empire reported on Empower Oversight filing a lawsuit against the SEC. The lawsuit claims that former SEC officials were biased against Ripple Lab and XRP in favor of Ethereum.

In January, non-US XRP investors petitioned for an investigation into the SEC’s moves against Ripple Lab. The petition claimed,

“The SEC enforcement actions on cryptocurrencies have involved the appearance of improper ties and conflicts of interest among officials, and should be investigated.”

The petition also pointed out that petition attorney John Deaton,

“Has compiled evidence that SEC officials may have colluded with outside parties to regulate cryptocurrencies in line with their personal financial interests.”

While the SEC focuses on the Hinman speech documents and emails, the conflict of interest remains another Achilles heel in the SEC’s case.

In April. Empower Oversight shared emails from the SEC ethics office warning hinman of his direct financial interest in Simpson Thacher. Hinman continued to meet with the firm despite the ethics office warnings.

Simpson Thacher forms part of a group that promotes Enterprise Ethereum. Hinman’s 2018 speech caused an ETH spike ahead of the SEC’s lawsuit against Ripple lab that caused a sharp XRP sell-off.

The continued lack of attention on the ethics office emails and alleged conflict of interest has given Empower Oversight cause for more action.

Empower Oversight Calls for Investigation into SEC Ethics Office Failings

On Tuesday, Empower Oversight issued a press release relating to Hinman’s conflict of interest.

According to the announcement,

“Empower Oversight sent a letter to the Office of the Inspector General of the Securities and Exchange Commission (SEC-OIG) requesting a comprehensive review of the SEC’s ethics officials to properly manage SEC official William Hinman’s potential conflict of interest regarding cryptocurrency issues.”

The press release also highlights that Hinman received more than $1.5 million in retirement benefits from Simpson Thacher while under the employment of the SEC. Hinman re-joined Simpson Thacher in 2021.

With the Securities and Exchange Commission under pressure from Empower Oversight, the next 6-days could prove pivotal in the SEC v Ripple case.

XRP Price Action

At the time of writing, XRP was down 13.34% to $0.3598. A mixed start to the day saw XRP rise to an early morning high of $0.4277 before sliding to a low of $0.3545.