US SEC May Win Against ripple in XRP Sale Discovery Requests
The U.S. Securities and Exchange Commission (SEC) has filed a response to defendant Ripple‘s objection to provide two years of audited financial statements, post-complaint agreements for the sale or transfer of XRP to “non-employee counterparties” and details regarding the amount. “XRP Corporate Sales Proceeds” received after the lawsuit.
US SEC’s Response to Ripple’s Opposition
The U.S. Securities and Exchange Commission filed a response to further support the request to mandate, according to a court filing late Jan. 23. Plaintiff SEC defends discovery on remedies the requests are procedurally appropriate, not “untimely”. It also argues that courts largely take post-complaint facts into account through remedies for securities law violations.
Additionally, the SEC is seeking penalties from Ripple and “send a strong message” that securities violations will be taken seriously. It does not require a mini-trial or any determination regarding the legality of sales made after complaints to institutions, including ODL customers. He argues that he doesn’t need to do this to take action that could stop these sales from continuing.
Ripple may argue that it plans to structure future ODL sales so that they do not fall under the summary judgment institutional sales category. But the SEC says Ripple should have post-sale and post-summary judgment agreements to test Ripple’s intent and whether Ripple’s concerted structuring of ODL sales is commercially viable.
Pro-XRP lawyer Bill Morgan “It may not lead to a summary trial, but there is a lot at stake in this matter. A broad injunction could do some damage to Ripple’s ODL business. I think an order will be issued to uncover these contracts after the complaint.”
Read More: Ripple Returns to SEC for Financial Statements and Discovery Quest
SEC Filed Carolyn Dicharry’s Memorandum
Ripple argued that the SEC could not require discovery while discovery was on and that there was no longer a good reason for further discovery regarding post-complaint sales. Additionally, the SEC used its full range of interrogation tools in the case.
In response, the SEC filed a statement by Carolyn Dicharry, who was Ripple’s advisor from 2015 to 2019. According to Ripple’s business records from July 2017 to April 2020, Ripple tested XRP direct sales contracts with 23 specific counterparties through XRP II LLC. .
He also claimed that most of the XRP sales between May 2020 and June 2023 were ODL transactions and that XRP was sourced directly from Ripple. “Ripple also sold some of the XRP to unknown buyers through market makers on centralized digital asset exchanges.
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