In July, another judge disagreed with the decision of Analisa Torres, the judge in the Ripple-SEC case, that “XRP sales in secondary markets are not investment contracts” in another crypto case.

Jed Rakoff, the judge in the SEC’s case against Terraform Labs and Do Kwon, stated that he disagreed with Ripple case judge Analisa Torres and made a decision in this direction. Stating that the SEC’s claim that Terra LUNA was sold unregistered was correct, the judge ruled that the case should continue.

“The other court decision is not recognized”

Stating that he did not distinguish between general sales in institutional and secondary markets, as in the Ripple case, Judge Rakoff used the following statements.

“The court refuses to make the distinction that coins sold directly to institutional investors are considered investment contracts, while sales to retail investors through secondary market transactions are not. Therefore, the court does not recognize the decision of another district judge in a similar case. Simply put, secondary market buyers had every reason to believe that the project developers would realize greater profits, which would then be passed on to them. The defense side praised the token’s profitability to both groups of investors. They were told that the proceeds from token sales would be transferred back to the Terra blockchain, which would generate more revenue.”

Of course, this decision of Rakoff, the judge in the Terraform Labs-SEC case, will not affect the Ripple-SEC case, but it has once again become clear that such issues are open to interpretation and can change at any time.

SEC to appeal Ripple decision

Another important information in the court files is also noteworthy. It is seen that the SEC showed Judge Rakoff the Ripple decision as an example before the decision and advised him not to follow it, and also informed him that this decision would be appealed.