In an ongoing trial between the SEC and payment protocol Ripple, the SEC has requested Ripple to submit a history of messages exchanged among its employees on Slack.
Slack is a business communication platform that offers IRC-style platforms including chat rooms, private groups, and direct messaging.
The request was made by the SEC lawyer Jorge Tenreiro to Judge Sarah Netbrun of the Southern District of New York on the 9th. The petition would require Ripple to produce relevant communications done over Slack by its employees.
The petition stated that Ripple had initially agreed to submit Slack’s data of its employees but had not submitted sufficient data. The SEC believes that some of the messages provided by Ripple contained important information. The petition also stated that the company has refused to cooperate on the matter.
The filing read:
“Ripple agreed at the outset of discovery to search for and produce responsive Slack data but now, in the waning days of fact discovery, suddenly refuses to do so on the basis of Ripple’s mistakes in gathering that data.”
The filing also noted that Ripple admitted to leaving out huge stacks of Slack data because of a ‘processing error’ and only a small portion had been delivered to the SEC. It said:
“Ripple now refuses to search the full set of Slack messages for any of the 33 custodians whose records the parties agreed to search and produce, other than the Individual Defendants. Ripple’s data error and refusal to produce most documents has already been highly prejudicial to the SEC.”
It has been revealed that there are over a million messages on Slack made by the Ripple employees. The amount is higher than Ripple’s large volume of emails, which indicated that the employees communicated as much on Slack as they did on the emails.
The settlement firm has requested that the deadline for responding to the petition be extended to 16th August 2021.