Lawyers with the United States Securities and Exchange Commission have filed a motion in federal court attempting to compel Ripple to produce certain documents related to its enforcement action.
In a Jan. 11 filing in the U.S. District Court for the Southern District of New York, the SEC requested Judge Sarah Netburn issue an order requiring Ripple to produce financial statements from 2022 to 2023 and “post-Complaint contracts governing ‘Institutional Sales.’” The commission said the contracts containing information on institutional sales were regarding a July 2023 ruling in which a judge said XRP (XRP) only qualified as a security when sold to institutional investors.
“The SEC requests this limited and targeted discovery to aid Judge Torres in determining whether, having found Ripple liable for violating Section 5 of the Securities Act of 1933, [...] the Court should impose relief such as injunctions and civil penalties and, as to the latter, in what amount,” said the filing.
Ripple filed a motion on Jan. 11 requesting an additional two days (Jan. 19 instead of Jan. 17) to respond to the SEC’s motion to compel.
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The SEC filed a lawsuit against Ripple, CEO Brad Garlinghouse and executive chair Chris Larsen in December 2020 for allegedly using unregistered securities to raise funds. The commission filed notice that it intended to drop the case against Garlinghouse and Larsen in October 2023 but would continue to pursue the matter with the crypto firm.
Ripple’s trial with the SEC is scheduled to begin in April. The commission has filed enforcement actions against major U.S. exchanges, including Coinbase and Binance. Ripple chief legal officer Stuart Alderoty has referred to the SEC as an “out of control regulator” due to its position on crypto.
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