XRP tokenholders take attempted to insert themselves as third-party defendants in the U.s.a. Securities and Commutation Committee's lawsuit against Ripple Labs.

A motility to arbitrate was filed by John Deaton of Deaton Police force Firm on Sunday on behalf of over 6,000 XRP holders. Deaton, himself an XRP holder, argued that the interests of tokenholders were not being adequately represented in the securities lawsuit against Ripple Labs and its executives.

Deaton's argument builds upon the refutation of whatsoever securities violations by Ripple Labs. Specifically, if XRP is non a security — equally Ripple executives Bradley Garlinghouse and Christian Larsen merits — then the efforts of Ripple executives take no bearing on the performance of XRP.

For this reason, Deaton, along with over six,000 concerned tokenholders, take moved to arbitrate equally 3rd-party defendants. The filing states:

"Given SEC's own statements that this Court is the exclusive forum to hear claims regarding this matter, and Ripple's position that XRP holders cannot rely on Ripple's efforts as protection of their interests in this case and the nature of Ripple's defense force, the XRP Holders' intervention is necessary."

In an announcement posted to Deaton'south website, CryptoLaw, on Dominicus, the lawyer and cryptocurrency enthusiast claimed that XRP holders had suffered $xv billion in losses in the days immediately following the SEC'southward announcement of its lawsuit against Ripple Labs. In the two weeks post-obit the commencement of the lawsuit, XRP'southward price sunk 76% from $0.76 down to $0.xviii.

The falling token price was triggered in role past the decision of major cryptocurrency exchanges to delist XRP in the wake of the lawsuit. Numerous major exchanges including Binance.US, eToro, Coinbase, Bittrex and OKCoin removed XRP from their corresponding platforms. Investment services such as Grayscale also liquidated XRP holdings, choosing to convert them into more Bitcoin (BTC), Bitcoin Cash (BCH) and Litecoin (LTC).

In January, Deaton, on behalf of XRP holders, filed a petition asking that the SEC distinguish between the XRP sales carried out past Ripple executives and the XRP purchases made by private tokenholders on secondary commutation markets. The filing also requested that whatever funds received from a possible Ripple settlement exist diverted to a collective trust for employ by XRP holders who incurred losses due to the SEC's actions. The request was dismissed by the SEC.

On Thursday, Ripple executives Garlinghouse and Larsen refuted the SEC's demands to investigate the finer details of their personal finances. Garlinghouse and Larsen called for a protective club to block an investigation into their personal accounts, arguing that their personal and professional person finances were not intertwined. The legal team also called for courts to quash subpoenas issued to 6 banks used by Garlinghouse and Larsen.