SEC Escalates Legal Battle with Ripple

The SEC intensifies its legal dispute with Ripple, seeking financial documents and post-complaint XRP sales contracts.

In a new motion to compel the production of financial documents and post-complaint XRP sales contracts, the U.S. Securities and Exchange Commission (SEC) has intensified its legal dispute with Ripple.

The agency responded to the defendant’s opposition to its motion on Tuesday. In a recent filing, the commission urged Judge Sarah Netburn of the Southern District of New York to order Ripple to disclose all post-complaint contracts for XRP sales to non-employee parties and audited financial statements for 2022 and 2023.

In its motion, the SEC asserts that these documents are crucial in ascertaining suitable remedies, particularly emphasizing the relevance of Ripple’s recent financial activity and sales contracts to the case.

Ripple’s assertions that this request is premature have been rejected by the Commission, which maintains that ongoing financial health and sales are critical factors in determining potential infractions and devising appropriate remedies.

Ripple has vehemently opposed the SEC’s petition, contending that the requests lack relevance to the case and are consequently untimely.

According to the organization, the Commission had sufficient time to request this information during the preliminary discovery stage.

Furthermore, the organization accuses the Commission of unjustifiably attempting to initiate a new phase of litigation.

Moreover, Ripple argues that the court’s assessment of remedies is unrelated to the information requested by the SEC, specifically concerning its financial condition and post-complaint sales.

Ripple underscores the potential for a protracted and superfluous re-litigation of the case resulting from the Commission’s approach, which would cause disruption to the judicial process and impose excessive burdens on all parties concerned.