U.S. SEC Reawakens Tension in Ripple Lawsuit With Shocking Demands
SEC reignites Ripple lawsuit with new document demands, aiming to assess Ripple's financial health and sales activities before trial.
After a long silence which caused spectators to assume that the SEC has given up on the Ripple lawsuit, the U.S. Securities and Exchange Commission (SEC) shockingly intensified its fight against Ripple Labs Inc. On January 11, 2024, the SEC asked a New York court to compel Ripple to provide more documents.
The SEC's first request is for Ripple's financial statements from 2022 and 2023. They want to check Ripple's financial health to decide on penalties and court orders. The second demand is for Ripple's records of "Institutional Sales" contracts after their initial legal issues. These documents are crucial for the SEC to figure out the right penalties for Ripple.
The SEC argues these documents will help Judge Torres decide if Ripple, found guilty of breaking the Securities Act of 1933, should face penalties. They believe understanding Ripple's recent actions and financial status is vital to prevent future violations.
Ripple is fighting back, saying the SEC's demands are too much and not relevant to the case. However, the SEC insists Ripple's recent sales and financial condition are key to deciding if they should be stopped from future violations and what penalties they should face.
On July 13, 2023, Judge Analisa Torres ruled that XRP's public sales weren't illegal, but their institutional sales were. The SEC's attempt to challenge this was denied. They also dropped charges against Ripple’s top executives. The trial is set for April 23, 2024, with a final meeting on April 16, 2024.
