A New York judge has granted a request by the U.S. Securities and Exchange Commission (SEC) to compel Ripple Labs to release certain financial statements and information about XRP’s institutional sales. ordered to submit.
The SEC’s request, made in early January, follows a key ruling in a lawsuit alleging that crypto-asset (virtual currency) company Ripple sold unregistered securities in the country. Judge Analisa Torres of the US District Court for the Southern District of New York ruled in July last year that only Ripple’s sale of XRP to institutional investors violated US law. The crypto industry celebrated the ruling as a victory for efforts to clarify how crypto assets are handled by regulators.
The SEC found Ripple liable for violations prior to the 2020 lawsuit, and the documents it requested will determine whether and how much a court should order an injunction or civil penalty for any period beyond that date. It states in the request that it will be helpful in case of emergency.
The order signed by Judge Sarah Netburn on February 5th orders Ripple to submit financial statements from 2022 to 2023 as well as contracts related to institutional sales since the lawsuit was filed. is.
Ripple responded in a Jan. 19 filing that the SEC’s requests were premature and that the regulator had “failed to justify each request.”
“The SEC’s irrelevant and burdensome discovery request should be denied, especially given that factual discovery has already been completed,” Ripple’s lawyers said in a statement.
Judge Netburn granted the SEC’s request in full.
｜Translation: CoinDesk JAPAN
｜Edited by: Toshihiko Inoue
｜Image: Ripple’s Garlinghouse CEO (Scott Moore/Shutterstock/CoinDesk)
｜Original text: Ripple Must Share Financial Statements Requested by SEC, Court Rules