SEC and Ripple Legal Dispute Progresses Further as SEC Requests Additional Compelling Evidence

The XRP community is abuzz with news of Ripple’s legal troubles, as the Securities and Exchange Commission (SEC) demands access to financial statements and contracts for the years 2022-2023. This development comes amidst an ongoing lawsuit between Ripple and the SEC, which initially began in December 2020.

Ripple, a well-known exchange, finds itself in legal hot water once again. The SEC has taken action by filing a motion to compel Ripple to provide financial statements for the upcoming years, as well as post-complaint contracts related to “institutional Sales”.

The SEC’s motion to compel signals a continuation of the intense legal battle between Ripple and the regulatory authority. On January 11, the SEC submitted a request to the Southern District of New York Magistrate Judge, Sarah Netburn. This request asks the court to order Ripple to hand over the requested financial statements and sales contracts.

This latest development follows Judge Analisa Torres’ summary judgment in the case, which was handed down some time ago. Judge Torres is known to have a leaning towards Ripple’s side in the dispute. In her ruling on July 13, 2023, Judge Torres acknowledged that Ripple had violated section 5 by offering and selling securities through unregistered transactions. These transactions involved the direct sale of XRP to primarily institutional buyers, hedge funds, and ODL customers.

Judge Torres concluded that Ripple had unlawfully sold approximately $729 million worth of XRP through these sales. She based this conclusion, in part, on certain provisions within the Institutional Sales contracts, which suggested that the parties involved did not consider XRP to be a commodity or a currency.

Tags: Ripple Vs SEC