Ripple Responds to SEC’s Requests for Financial Statements and Discovery in XRP Lawsuit

Introduction

In a recent turn of events, Ripple, the prominent cryptocurrency firm, has taken a firm stance against the Securities and Exchange Commission’s (SEC) motion to compel. The company has officially filed a response, outlining two compelling reasons why the court should reject the Commission’s demands.

Ripple Deems SEC’s Requests “Untimely”

Addressing Judge Sarah Netburn in a formal letter, Ripple’s legal team argues that the SEC’s requests are deemed “untimely.” According to Ripple, the Commission had ample opportunity to request the required documents during the open fact discovery period. Ripple’s lawyers assert that the SEC’s failure to do so during that critical phase now renders their current demands lacking in good cause. Furthermore, Ripple points out that the SEC had previously refrained from arguing the relevance of post-complaint discovery during court proceedings, creating an inconsistency in their current position.

Allegations of Foul Play

The second line of defense from Ripple stems from the SEC’s inability to justify each request “on the merits.” Ripple’s legal experts contend that the requested documents are irrelevant to the core of the case and hold no bearing on the court’s determination of remedies. Moreover, Ripple suggests a potential element of foul play on the SEC’s part, pointing out the Commission’s attempt to secure a summary ruling on the nature of post-complaint sales. Ripple argues that such determinations should be part of a comprehensive proceeding, allowing the court a complete understanding before ruling on critical issues.

Ripple’s Caution Against a Slippery Slope

Expressing concern, Ripple urges the court to avoid descending down the “slippery slope the SEC is paving.” The company warns that any actions taken after the initial lawsuit may lead to a second full-blown litigation, causing significant delays that burden both the parties involved and the court itself. Ripple’s legal team advises against a summary judgment, emphasizing that it would strip them of certain legal protections.

SEC’s Demands and Ripple’s Stance

As part of its motion to compel, the SEC seeks Ripple’s audited financial statements for 2022 and 2023. Additionally, the Commission aims to obtain all contracts related to the sale of XRP entered into by Ripple post-commencement of the initial lawsuit. Essentially, the SEC is on the hunt for evidence suggesting potential violations of securities laws by Ripple even after the legal battle commenced.

Conclusion

The XRP lawsuit continues to unfold with Ripple vehemently opposing the SEC’s demands. As the legal saga ensues, the cryptocurrency community watches closely, eager to see how the court navigates the complexities of this high-stakes case.

Featured image from The Cryptonowmist, chart from Tradingview.com source

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