SEC Secures Win in Ripple Lawsuit: Judge Orders Ripple to Disclose Financial Information

In the latest update on the XRP lawsuit, the U.S. district judge has ruled in favor of the SEC, ordering Ripple to disclose important financial information. This marks a victory for the SEC in their legal battle against the blockchain company.

The U.S. District Judge, Analisa Torres, has approved the SEC’s motion to compel Ripple to provide additional financial statements from 2022-2023 and contracts related to “Institutional Sales” of XRP. The SEC argued that this information is crucial in determining the appropriate penalties and remedies in the case.

Ripple had opposed the SEC’s request, considering it to be “untimely” and “unnecessary”. However, the court disagreed and emphasized the significance of this information for the remedy stage of the lawsuit.

The court’s decision, which states that there is “no basis to deny access to readily available information that may be relevant to the remedy stage”, is a win for the SEC and strengthens their position in the case.

The requested disclosures will play a crucial role in determining potential injunctions and civil penalties against Ripple if they are found guilty of violating Section 5 of The Securities Act of 1933. Although charges against Ripple executives have been dropped, the question of whether XRP is classified as a security remains unresolved.

John Deaton, the attorney representing pro-XRP holders, has suggested a settlement involving Ripple paying a fine of around $10 million.

With the SEC now granted access to additional financial information from Ripple, the lawsuit enters a critical phase. The outcome will have significant implications for Ripple and the XRP token, which has experienced a substantial drop in price from its all-time high of $3.4 to a drastic $0.41.