Ripple Flags SEC’s Misstatements and Mischaracterization, Files Sur-Reply

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Ripple Flags SEC’s Misstatements and Mischaracterization, Files Sur-Reply
  • Ripple files a Sur-Reply letter citing the SEC’s misstatements and mischaracterization.
  • The letter came in response to the recent developments in the SEC’s Motion to Compel.
  • While Bill Morgan cites that the SEC often misleads the court, “WrathofKahneman” requests the court to disregard the misstatements.

In a novel turn in the SEC-Ripple legal tussle, Ripple submitted a motion to file a Sur-Reply in connection with the SEC’s Motion to Compel. While the letter highlighted the “significant factual mischaracterization” in the regulators’ reply letter, the prominent XRP attorney, Bill Morgan, slammed the SEC for their frequent “misleading” statements.

On January 11, the SEC filed a Motion to Compel, demanding Ripple to produce certain documents, including the financial statements for FY 2022-23 and post-complaint contracts governing institutional sales. However, the company opposed the motion, citing it as an “untimely” request. Pointing out that the SEC’s request violates the law, Ripple requested the court to dismiss the filing.

On January 23, the regulators filed a reply letter to Ripple’s motion, reinforcing their claims and requirements. As per Ripple’s statement, the SEC, in the letter, claimed that the platform “does …not argue that it would be burdened in producing” post-complaint contracts. In addition, the regulators claimed that Ripple produced XRP’s sales contracts from 2020 to June 2023 in the class action suit.

Ripple dismissed the commission’s claims as a “significant misstatement of fact.” In the Sur-Reply letter, Ripple argued that they had objected to the SEC’s request for document submission as “overly burdensome.” The platform argued against the second claim, stating,

Ripple did not produce any contracts post-dating December 22, 2020 inZakinov.Nor did Ripple “catalogue” these contracts in connection with the class action litigation.

While XRP advocate James K. Filan shared an X post about Ripple’s Sur-Reply letter, Bill Morgan criticized the regulators, remarking, “The SEC misleading the Court is happening far too often.” Meanwhile, “WrathofKahneman”, a prominent blockchain voice on X, argued that the court should disregard the SEC’s misstatements about Ripple.

The long legal saga is centered on the SEC-Ripple lawsuit, in which the regulators charged the platform for allegedly offering unregistered securities. While the legal conflict continues, it stands as a primary impediment to the realization of an XRP ETF.

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