The U.S. Securities and Exchange Commission (SEC) has escalated its legal actions against Ripple Labs Inc. in the ongoing XRP lawsuit.
Key Takeaways
- The SEC intensifies legal pressure on Ripple by filing a motion to compel financial statements and documentation of post-Complaint Institutional Sales contracts.
- Ripple opposes the demands, considering them irrelevant and beyond the permissible scope of discovery for the lawsuit’s remedies phase.
- The SEC asserts that understanding Ripple’s ongoing business activities is vital for determining appropriate legal actions and sanctions.
- Ripple requests an extension to respond to the SEC’s motion, with the legal battle scheduled to continue in a trial starting on April 23, 2024.
SEC’s Escalated Demands in Ripple Lawsuit
The ongoing legal dispute between Ripple and the U.S. SEC has entered a new phase as the SEC filed a motion on January 11, 2024, to compel Ripple to provide crucial documents.
The SEC’s primary focus is on obtaining Ripple’s financial statements for the years 2022 and 2023, strategically aiming to assess Ripple’s financial health.
Read More: SEC’s $770M Demand: Ripple’s Legal Battle Takes a Surprising Turn
Additionally, the SEC is seeking documentation related to Ripple’s post-Complaint Institutional Sales contracts. These documents are considered essential for evaluating the legal actions and sanctions applicable to Ripple, especially concerning its activities following the initial complaint.
Ripple’s Stance and SEC’s Justifications
Ripple has vehemently opposed these heightened demands, contending that the SEC’s request extends beyond the permissible scope of discovery for the current phase of the lawsuit, which is focused on remedies. Ripple argues that the demand for post-Complaint financial documents and contracts is not only excessive but also irrelevant to the case’s current context.
Contrary to Ripple’s resistance, the SEC justifies its demand by emphasizing the importance of understanding Ripple’s ongoing business activities, particularly its Institutional Sales of XRP post-Complaint. The SEC argues that gaining insights into Ripple’s current financial situation is crucial for tailoring a civil penalty that effectively deters future violations of securities laws.
To Conclude
The SEC filed a motion on January 11, 2024, demanding Ripple’s financial statements for 2022 and 2023, as well as documentation of post-Complaint Institutional Sales contracts.
Ripple contests these demands, arguing they exceed the permissible scope of discovery for the lawsuit’s remedies phase. The SEC justifies its request by stating that insights into Ripple’s financial health and post-Complaint activities.
