Judge Rules in Favor of SEC, Orders Ripple to Comply with Discovery Requests
A federal judge, U.S. Magistrate Judge Sarah Netburn, has ruled in favor of the U.S. Securities and Exchange Commission (SEC) in the case against Ripple Labs regarding XRP.
SEC’s Requests
The SEC has requested Ripple to produce their financial statements for 2022-2023 and provide contracts related to institutional sales. Additionally, the SEC wants Ripple to answer questions about the amount of XRP institutional sales proceeds received after the complaint was filed.
SEC’s Motion Granted
Ripple’s Objections Dismissed
Ripple objected to the SEC’s requests, claiming they were untimely and had no bearing on the court’s remedies determination. However, the court found no basis to deny access to relevant information that could inform the remedy stage. The court also dismissed Ripple’s concerns about the production of post-complaint contracts, stating that it would not result in a costly trial. The judge ruled that the SEC has shown that information about post-complaint XRP sales could assist in determining the remedy.
Deadline for Discovery
The court has set a deadline of February 12 for Ripple to comply with the SEC’s discovery requests related to remedies.
Hot Take: Ripple Ordered to Comply with SEC’s Discovery Requests
In a ruling favoring the SEC, a federal judge has ordered Ripple Labs to comply with the regulator’s post-complaint discovery requests. This includes providing financial statements and contracts related to institutional sales. The judge dismissed Ripple’s objections, stating that the requested information is relevant to the remedy stage of the case. Ripple must also answer questions about the amount of XRP institutional sales proceeds received after the SEC complaint. The deadline to complete the discovery process has been set for February 12. This ruling is a significant development in the ongoing legal battle between Ripple and the SEC.
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