SEC Piles Pressure on Ripple with Latest Move

The U.S. Securities and Exchange Commission (SEC) has escalated its legal battle against Ripple with a new motion to compel the production of financial documents and post-complaint XRP sales contracts. On Tuesday, the agency filed a reply to the defendant’s opposition to its motion. 

SEC’s argument for more disclosure

In a recent filing, the SEC urged Judge Sarah Netburn of the Southern District of New York to order Ripple to disclose audited financial statements for 2022 and 2023 as well as all post-complaint contracts for XRP sales to non-employee parties. 

The SEC’s motion argues that these documents are critical for determining the appropriate remedies, emphasizing that Ripple’s recent financial activity and sales contracts are relevant to the case. 

The SEC has rebuffed Ripple’s claims that this request is untimely, insisting that ongoing sales and financial health are pivotal in assessing potential violations and fashioning remedies.

Ripple’s stance on discovery requests

Ripple has strongly opposed the SEC’s motion, arguing that the requests are both untimely and irrelevant to the case. 

The company asserts that the SEC had ample opportunity to request this information during the initial discovery phase and accuses the Commission of attempting to introduce a new phase of litigation without proper justification. Ripple also contends that the information sought by the SEC, particularly regarding its post-complaint sales and financial condition, does not bear on the court’s decision regarding remedies. 

Ripple emphasizes that the SEC’s approach could potentially lead to a lengthy and unnecessary re-litigation of the case, disrupting the judicial process and imposing undue burdens on all parties involved.