SEC Targets Ripple With New Motion
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January 12, 2024 1:03 pm
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The SEC has filed a new motion against Ripple Labs in its ongoing lawsuit against the crypto firm.
At the center of the new legal motion are Ripple’s financial records, documents the company has kept close to its chest for the entirety of the legal proceedings.
More specifically, the SEC is demanding Ripple’s 2022-2023 financial statements and contracts related to ‘institutional sales’ of XRP by the crypto firm.
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The purpose of acquiring the financial documents is to determine the extent of the financial penalties in the remedy phase—if there are any penalties at all.
Below is the SEC’s letter to U.S. Magistrate Judge Sarah Netburn of the Southern District of New York:
Daily Coin writes:
As the courtroom drama delves into Ripple’s financial intricacies and contractual nuances, the outcome could set a precedent, influencing how similar projects navigate the regulatory terrain.
Ripple has also filed a motion in response; pro-XRP Counsel James K. Filan explained: “Ripple has filed a Motion for Extension of Time requesting an additional 2 days, until January 19th, to respond to the SEC’s Motion to Compel.”
#XRPCommunity #SECGov v. #Ripple #XRP @Ripple has filed a Motion for Extension of Time requesting an additional 2 days, until January 19th, to respond to the @SECGov’s Motion to Compel. pic.twitter.com/mAy7mPi4gw
— James K. Filan 🇺🇸🇮🇪 (@FilanLaw) January 11, 2024
According to Finbold
Ripple, despite its participation in the remedy-focused discovery process, has staunchly opposed revealing post-complaint discovery documents.
However, the SEC refutes Ripple’s basis for refusal, citing a court order.
On July 13, 2023, Judge Analisa Torres ruled that Ripple violated Section 5 of the Securities Act of 1933 through unregistered XRP sales, primarily to institutional buyers.
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