Ripple has contested the U.S. Securities and Exchange Commission’s (SEC) motion to compel, opposing requests for audited financial statements.
Key Takeaways
- Ripple has challenged the SEC’s motion to compel, contesting requests for audited financial statements, post-complaint XRP sales contracts, and details on “XRP Institutional Sales proceeds.”
- Ripple argues that the SEC lacks good cause for further discovery, noting that the SEC failed to request relevant information during the open fact discovery phase.
- Ripple asserts that the SEC previously considered post-complaint conduct irrelevant to the case and resolved the matter after Ripple’s agreement. Therefore, the SEC’s current requests are unwarranted.
- Ripple contends that the SEC’s requests are irrelevant to the court’s determination of remedies and, if entertained.
Ripple Challenges SEC’s to Compel in XRP Lawsuit
In the latest development of the SEC’s lawsuit against Ripple Labs, Ripple has formally opposed the SEC’s motion to compel, particularly contesting requests for audited financial statements, post-complaint contracts related to the sale or transfer of XRP to “non-employee counterparties,” and information on “XRP Institutional Sales proceeds” after the lawsuit filing.
In a court filing on January 19, Ripple argued that the SEC lacks good cause for further discovery, highlighting that the SEC did not pursue relevant information during the open fact discovery phase.
Ripple contends that the SEC previously deemed post-complaint conduct irrelevant to the case, and this matter was resolved following Ripple’s agreement.
Reasons Behind Denying Request
Ripple provides two primary reasons for denying the SEC’s requests. Firstly, it emphasizes that the SEC’s failure to request discovery during the appropriate phase renders its current motion unjustified.
Ripple states, “The SEC never argued that post-complaint discovery was relevant to remedies but instead took the position that post-complaint conduct was entirely irrelevant to the case. That motion was resolved after Ripple agreed.”
Read More: SEC Increases Pressure on Ripple with New Document Demands
To Conclude
Ripple’s opposition to the SEC’s motion to compel underscores the ongoing legal complexities in the XRP lawsuit. The dispute revolves around the SEC’s requests for information on XRP sales and financial statements, with Ripple arguing that these demands are unwarranted and irrelevant to the court’s determination of remedies.
