Ripple Case Returns to Headlines as Emails Criticize SEC

A newly surfaced email linked to files released in the broader Epstein document disclosures has triggered fresh discussion in the crypto community after it referenced the long-running legal battle between Ripple Labs and the U.S. Securities and Exchange Commission (SEC).

Pro-$XRP lawyer Bill Morgan highlighted the email, which was reportedly written by whistleblower Christopher Dilorio and included strong criticism of the SEC’s handling of crypto regulation, market manipulation, and penny-stock enforcement. The message argued that regulators had taken an inconsistent stance by treating some digital assets differently from others, using the SEC’s lawsuit against Ripple as a key example.

For the unversed, in August 2025, Ripple and the U.S. SEC ended their long legal fight through a settlement. The outcome confirmed that $XRP is not considered a security when traded on exchanges, while Ripple agreed to pay penalties linked to some earlier institutional token sales that violated securities rules.

What the Email Claims

According to the text visible in the released screenshots, the writer alleged that regulatory inconsistencies created confusion in financial markets. One highlighted argument stated that regulators had claimed $XRP could be treated as a security while Bitcoin was not, questioning how similar digital assets could be classified differently. The email also included broader allegations of corruption, market manipulation, and regulatory failures related to penny stocks and over-the-counter trading markets.

The writer hinted that either all cryptocurrencies should be treated as securities or none should be, arguing that selective enforcement weakened regulatory clarity. The email also referenced older market investigations and past enforcement actions to support these claims, although the statements appear to reflect the author’s opinions rather than verified findings.

Legal Reality of the Ripple Case

Despite the strong claims in the email, the legal outcome of the Ripple case was more nuanced. U.S. courts ruled that $XRP itself is not a security when traded on secondary markets, but also determined that certain institutional sales by Ripple constituted unregistered securities offerings.

Former SEC attorney Marc Fagel responded to the circulating discussion by clarifying that the court did find that Ripple raised funds through unregistered securities sales in certain contexts. He also said that not every crypto transaction automatically violates securities law, emphasizing that enforcement depends on how tokens are sold and marketed.

Experts remain uncertain why the email appeared among the Epstein-related file releases, as it does not directly relate to the core legal issues in those investigations.

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