Developments After the Beginning of the Case

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Developments After the Beginning of the Case


TL;DR

• ripple and the SEC were in a serious dispute involving key witness testimony from Andrea Fox.
• The organizations also disagreed over the sealing of certain financial documents; the regulator considered this data critical to the case.

Conflict Over Key Testimony


The infamous legal battle between Ripple and the US Securities and Exchange Commission (SEC) has been going on since December 2020. At the time, the regulator accused the firm of raising over $1.3 billion through an unregistered securities offering by selling XRP.

The case went through numerous ups and downs in recent years before reaching the trial stage on April 23, 2024. Shortly after this date, Judge Sarah Netburn signed a new planning order focusing on the request for relief and the granting of a final order.

Both parties complied with the rules, submitted the necessary documents and presented basic data that could be useful in resolving the case.

The process could have been smoother if Ripple and the SEC disagreed on something. key Witness statement from Andrea Fox. The company initially argued that the statement represented an unsolicited expert opinion, but the watchdog described the process as “standard summary evidence supporting impairment calculations.”

On April 29, the SEC filed a formal objection to Ripple’s request, insisting that the statement was “not based on specific experience and does not offer any insight.”

“Rather, he applied basic arithmetic to Ripple’s financial records to facilitate the presentation of evidence to Judge Torres… court The agency “should reject Ripple’s request,” he added.

Ripple backed down a few days later. filing a letter further supporting his initial request. He alleged that the SEC failed to show that the affidavit was summary evidence rather than expert testimony:

“Fox is an expert because he claims to use technical or other specialized knowledge to help the fact seeker understand evidence or determine a fact in issue. Doesn’t just apply basic arithmetic to Ripple’s financial recordsAs the SEC claims.”

Ripple went further and stated that even if Andrea Fox could achieve this: to be categorized As a summary witness, the regulator failed to disclose him before the discovery process was over.

Additional Conflict


Ripple’s request to seal and redact some evidence and financial document data related to the regulator’s decision and request for relief has become another demand. bone contention.

“The court should deny Ripple’s request to suppress financial and securities sales information because this information constitutes “judicial documents” as it is central to the parties’ arguments in support of the claim for damages and, therefore, may tend to influence the case. of the court Organization “solution decision” stated In May.

The SEC believes this data could shed more light on Ripple’s past XRP sales and could be crucial in legal proceedings. However, the company argues that past contracts are no longer valid due to recent changes in sales procedures.

“Ripple no longer sells XRP through over-the-counter transactions that have what the Court determined in summary judgment to be “Institutional sales.” There is no amount of Ripple’s current XRP sales to customers for use in connection with Ripple’s ODL product. between Relevant terms of over-the-counter contracts, such as discounts offered to advanced counterparties.

We are waiting for the judge’s decision


Although it is in the trial phase The outcome of the case may be postponed for years due to the complexity of the legal process and possible objections from both parties.

One of the people who predicted a relatively quick solution was American lawyer Jeremy Hogan. Hey thinks The parties could shake hands on a $100 million deal this summer.

Some see the SEC as the underdog in the legal battle due to Ripple’s three partial court victories last year. every victory followed With the price of XRP rebounding, which means the eventual end of the lawsuit could re-trigger increased volatility.

For those interested in learning more about the case and its potential impact on the asset’s valuation, feel free to watch our exclusive video below:


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