XRP token holders have been refused inclusion as third-party defendants in the ongoing legal battle between Ripple and the US Securities and Exchange Commission (SEC).
Federal judge Analisa Torres struck down their request, denying 6,000 XRP token holders access to the lawsuit. The 6,000 owners have gathered under the banner XRP Army, in a bid to gain “adequate representation” in the lawsuit against Ripple.
However, Torres denied the motion without prejudice, meaning that should the XRP Army decide to, it can re-file the motion in future.
This leaves the matter without much clarity as it's not immediately clear whether XRP token holders can file a motion to intervene and be granted access ahead of the official start date of the lawsuit.
The original motion was filed by Deaton Law Firm managing partner John Deaton last Saturday. On the firm's website, Deaton wrote that XRP token holders have suffered no less than $15bn in losses because of the ongoing legal saga with SEC, and the pending lawsuit.
The value of XRP crashed from $0.58 to $0.21 in December, even though it has bounced back to $0.48 as of today.
Last year, SEC brought a case against Ripple CEO Brad Garlinghouse and co-founder Chris Larsen for “conducting unregistered, ongoing digital asset securities offering”.
The additional scrutiny from SEC has sent shockwaves across the crypto sector and many exchanges have withdrawn support for Ripple for the time being. Ripple is still an accepted currency at many online entertainment venues, though.