SEC demands Ripple’s financial details and sales agreement
Key Takeaways
- The SEC filed a motion requiring Ripple to provide 2022-2023 financial statements and documentation related to XRP institutional sales.
- This legal action is part of the SEC’s broader enforcement campaign against other cryptocurrency companies.
- Ripple’s trial with the SEC is scheduled to begin in April, continuing a legal battle that began in December 2020 over charges of selling unregistered securities.
The U.S. Securities and Exchange Commission (SEC) is stepping up its legal action against Ripple by filing a motion in the U.S. District Court for the Southern District of New York.
SEC is taking to the courts Ripple ordered to provide financial statements from 2022 to 2023 and Document on post-complaint agreements applicable to “institutional sales”.
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this request Originating from the July 2023 ruling This designates XRP as a security when sold to institutional investors, a key aspect of the ongoing enforcement action against Ripple.
The SEC’s filing details the need for this information.
The SEC after Judge Torres found Ripple liable for violating Section 5 of the Securities Act of 1933. <...> This limited, targeted discovery is requested to help the court determine whether relief, such as injunctions and civil penalties, should be imposed. How much to the latter.
In response to this motion: Ripple submitted a counter-request for a two-day extension on January 11.The deadline for responses has been postponed to January 19.
These developments Part of a broader legal battle launched by the SEC In December 2020, it sued Ripple, CEO Brad Garlinghouse, and Chairman Chris Larsen. Use of unregistered securities to raise funds. The SEC dismissed the lawsuit against Garlinghouse and Larsen in October 2023, but Continue Pursuing a Problem with a Cryptocurrency Company.
Ripple’s SEC trial is scheduled for April.It comes against the backdrop of the Commission’s wide-ranging enforcement actions targeting major U.S. cryptocurrency exchanges, including Coinbase and Binance.
Stuart Alderoty, Ripple’s chief legal officer, criticized the SEC’s approach, saying: The behavior of “out-of-control regulators” In the context of cryptocurrency regulation.
The SEC’s latest legal action demands detailed financial records and contracts from Ripple as part of ongoing litigation over alleged securities violations, highlighting the growing regulatory scrutiny of the cryptocurrency industry.
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