Legal expert James Murphy, also known as "MetaLawMan," provides fresh insights into the SEC v. Ripple case, particularly focusing on the SEC's pursuit of disgorgement.

Disgorgement, a concept within securities regulations, entails surrendering all unlawfully acquired profits obtained from illicit activities. Murphy sheds light on a crucial aspect of the SEC's disgorgement push in the Ripple lawsuit, highlighting what he considers a significant aspect of the regulator's demand.

Murphy points out that the U.S. Supreme Court has previously clarified that all disgorged funds should be directed to the victims involved in the case. He emphasized this during a recent interview on the Good Morning Crypto podcast.

This development arises as Ripple seeks to seal the Remedies Brief in a recent court filing with the US SEC, as reported by Crypto News Flash.

Murphy emphasized that any disgorged funds recovered by the SEC would go to the purported victims of the Ripple case, primarily institutional purchasers of XRP.

He explained that if the SEC prevails, it would distribute the disgorged funds solely to institutional purchasers of XRP, without retaining any portion for itself or the U.S. Treasury. Murphy further argued that this action would only benefit institutional purchasers of XRP, as they have already profited from their dealings with Ripple.

This perspective prompted responses from other XRP-supporting attorneys, including Bill Morgan, who criticized the SEC for potentially enriching institutional customers of XRP through its disgorgement request. Morgan labeled the SEC's disgorgement demand as one of the peculiarities in the Ripple lawsuit, offering no benefit to any involved party.

Both parties have submitted the requisite remedies-related brief and are currently engaged in the process of submitting omnibus motions to seal confidential information linked to the remedies brief.