A non-party filed an emergency letter dated April 2 to federal Judge Analisa Torres, who oversaw the US Securities and Exchange Commission (SEC) case against Ripple Labs.
The letter claimed to have “decisive evidence” to settle pertinent questions in the lawsuit.
FOX Business reporter Eleanor Terrett first reported on the “odd filing” on social media platform X late Wednesday. She mentioned that Justin W. Keener, the one who filed the letter, said his plea was an “emergency request to present decisive evidence in favor of the defendants and in favor of liberty for the American people.”
In the letter, Keener doesn’t explain what this “decisive evidence” is other than a vague reference to “physical investment contracts” he has collected. He described himself as a concerned citizen with no financial stake in the case, stating his aim is to expose what he sees as government overreach in the SEC’s legal strategy.
Who is Justin Keener?
According to a December 2022 published report on the SEC website, Keener was sued by the financial regulator in 2020, alleging that he acted as an unregistered dealer while transacting hundreds of millions in penny stocks.
A federal court, led by US District Court for the Southern District of Florida Judge Beth Bloom, ordered him to pay more than $10 million in penalties. In its final judgment, the court ordered Keener to pay a total of $10.2 million, including $7.79 million in disgorgement, $1.43 million in prejudgment interest, and a $1.03 million civil penalty.
The judgment also imposed a permanent injunction and a five-year ban on participating in penny stock offerings. Additionally, Keener was required to relinquish certain stock holdings and conversion rights tied to existing convertible securities.
His request to the court seems like a self-serving attempt to restore his public image, although supporters may see that his filing proportionately touches on the SEC’s “unfair” actions.
Keener’s letter argues that the SEC’s proposed $2 billion penalty is excessive, unfair, and threatens American innovation. He points to the July 2023 summary judgment, in which the court found Ripple’s past direct sales of XRP to institutional investors violated Section 5 of the Securities Act but also ruled that other sales, such as programmatic ones, did not.
He also talked about past SEC settlements that involved far higher capital raises but resulted in far lower penalties: $24 million for Block.one, $18.5 million for Telegram, $5 million for Kik, and $21 million for Genesis.
“Given the absence of fraud and the limited violation scope,” the letter continues, “a $2 billion penalty appears designed to punish rather than remedy. This may violate the Supreme Court’s stance on civil penalties, which must remain remedial in nature.”
XRP struggles continue post-SEC court battle
Meanwhile, Ripple’s native token XRP has yet to register a profound positive price action. It is now trading at $2.05, 1.2% down in the last 24 hours, and well below moving averages, with signs of a growing distribution phase.
Per TradingView’s technical analysis, momentum indicators reaffirm the downward trajectory, with a dangerously oversold Relative Strength Index (RSI) at 38.6, and a bearish Moving Average Convergence Divergence (MACD) crossover signaling no immediate relief for bulls.
Short-term traders are watching the $2.01 support level, which, if broken, could send prices down to $1.97. For any bullish rebound to take shape, the price needs to clear $2.16 with volume support.
Mark watchers have pinned the most advantageous short entry in the $2.16–$2.27 resistance zone, with stop-loss orders recommended above $2.27 for a much lower risk.
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