The SEC Launches Fresh Attack on Ripple in Latest Court Filing

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  • The SEC has requested Ripple to produce its 2022-2023 financial statements and post-Complaint contracts governing institutional sales.
  • According to the filing, institutional sales cover unregistered offers and sales of securities for the pre-Complaint period.
  • Ripple objected to every requested interrogatory and all documents the SEC sought, according to crypto lawyer Bill Morgan.

The U.S. Securities and Exchange Commission (SEC) has filed a motion to compel Ripple to produce its financial statements for 2022-2023 and to produce its post-Complaint contracts governing institutional sales. According to the filing, institutional sales cover the same types of transactions that Judge Torres held to constitute unregistered offers and sales of securities for the pre-Complaint period.

The SEC addressed the recent filing to Judge Sarah Netburn, the United States Magistrate Judge of the Southern District of New York. The SEC sought to compel Ripple to answer a single interrogatory setting forth the amount of XRP Institutional Sales proceeds it received after filing the Complaint for contracts entered into pre-Complaint.

Another notable plea by the SEC in the filing is for the Court to impose relief, such as injunctions and civil penalties on Ripple. The SEC pleaded with the Court to make a decision that would aid Judge Torres in determining whether Ripple was culpable in the original case.

While commenting on the recent filing, renowned crypto lawyer Bill Morgan noted that the war for the status of XRP as not itself a security is over. According to him, the SEC has just begun another battle against Ripple, which is the battle for post-Complaint ODL sales since December 2020. Notably, Ripple’s ODL is a cross-border payment solution that leverages XRP as a bridge asset.

Morgan further noted that the fresh battle that the SEC is launching against Ripple looks like a “bitter fight ahead,” given that Ripple objected to every requested interrogatory and all documents the SEC sought.

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