Ripple Loses Legal Battle Against SEC Over XRP Sales
The Securities and Exchange Commission (SEC) has emerged victorious in its lawsuit against Ripple, which accused the company of engaging in unregistered sales of XRP. Last year, a New York court ruled that sales of XRP to institutional investors were illegal securities sales, but sales to retail investors were not. Now, the court has granted the SEC’s motion to compel Ripple to provide more information for determining appropriate penalties. This includes financial statements and contracts related to institutional sales of XRP, as well as details about the amount of proceeds received from these sales.
Ripple Claims Financial Health Irrelevant
Ripple has argued that its financial health is irrelevant to the case. However, the court disagreed and stated that denying access to relevant information would be premature at this stage. The judge also agreed with the SEC that information about post-complaint institutional sales of XRP is important in determining whether an injunction is necessary.
Ripple has not yet responded to requests for comment on the matter.
Hot Take: Ripple Faces Setback in Legal Battle Against SEC
Ripple’s legal battle against the SEC has taken a negative turn with the court ruling in favor of the regulator. The decision requires Ripple to disclose additional information regarding its sales of XRP, including financial statements and contracts. Despite Ripple’s argument that its financial health is irrelevant, the court disagreed and emphasized the importance of accessing relevant information. This setback poses challenges for Ripple as it navigates through the legal proceedings and potential penalties imposed by the SEC.
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