Court FORCES Ripple To Disclose Financial Documents
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February 6, 2024 4:46 pm
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A U.S. court has ordered Ripple Labs to produce its financial statements in the ongoing SEC lawsuit.
Judge Sarah Netburn issued the ruling on February 5, 2023, and Ripple has until February 12th to comply with the order and produce its financial statements for 2022-2023.
The financial statements have been a point of contention for some time now, as Ripple fought to keep the documents out of the SEC’s clutches.
Although Ripple Labs claimed a historic victory over the SEC late last year, the SEC is set on forcing the crypto company to pay a hefty fine during the remedies phase of the ongoing litigation.
Through obtaining the financial statements, the SEC hopes to prove that Ripple Labs made compromised institutional sales. Here’s the court order and the latest developments:
Coin Telegraph provided this statement from Judge Netburn:
“The controversy before this Court is whether to order Ripple to answer this interrogatory and not what weight to assign to Ripple’s response.
Because the SEC has made a sufficient showing that this information may assist the Court in fashioning its remedy, Ripple must respond to the Interrogatory.”
Colin Wu explained: “A U.S. judge approved a motion by the SEC to require Ripple to provide 2022-2023 financial statements and contracts governing institutional sales of XRP. Ripple opposed the motion. The judge earlier determined that institutional sales were securities activities.”
A U.S. judge approved a motion by the SEC to require Ripple to provide 2022-2023 financial statements and contracts governing institutional sales of XRP. Ripple opposed the motion. The judge earlier determined that institutional sales were securities activities.…
— Wu Blockchain (@WuBlockchain) February 6, 2024
Decrypt added:
Last month, Ripple CEO Brad Garlinghouse slammed Wall Street’s biggest regulator, calling the SEC “very hostile.” He added that SEC Chairman Gary Gensler was a “political liability” and that his way of regulating the crypto industry wasn’t working.
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