In the ongoing legal battle between the SEC and Ripple, the SEC has secured a small victory by obtaining a court order that mandates Ripple to disclose additional documentation.
U.S. District Judge Sarah Netburn directed Ripple to produce financial records and information about XRP contracts after the lawsuit was filed.
Fox Business journalist Eleanor Terrett reported this significant development on X, highlighting that Ripple is now obligated to present its financial statements for 2022-2023, along with details of post-lawsuit institutional sales of XRP.
Furthermore, Ripple must also provide comprehensive responses to the SEC’s inquiries concerning the revenue it garnered from institutional sales of XRP.
The SEC’s motion , filed on January 11, sought to compel Ripple to submit documents essential for a deeper probe into the firm’s institutional sales of XRP. Ripple, however, contested the motion, labeling the SEC’s demand as “untimely” and an overreach of legal norms. The company urged the court to reject the SEC’s request on these grounds.
In a detailed response, the SEC stood firm on its requirement for Ripple’s financial information. Ripple, in turn, filed a Sur-Reply , pinpointing what it described as “significant misstatements of facts” by the SEC. Contrary to the SEC’s assertion that Ripple deemed the document request manageable, Ripple countered, insisting that complying with the demand would be “over burdensome.”
Despite Ripple’s objections, the court has ruled in favor of the SEC, granting the regulatory body the authority to acquire the documents it had requested.
The court emphasized the relevance of acquiring further details about Ripple’s financial transactions, asserting that this information is crucial for determining appropriate remedies against Ripple. Moreover, the court noted that insights into the institutional sales of XRP are essential to assess the need and fairness of imposing an injunction.
“At this stage, the Court sees no basis to short-circuit that inquiry by denying access to readily available information that may be probative to the remedy stage. Accordingly, Ripple is ORDERED to produce its 2022-2023 financial statements under the parties’ protective order”, the Judge noted.
Ripple has executed three substantial XRP transfers within the last 24 hours, amounting to a total of 206 million XRP, valued at approximately $103 million. The initial transfer occurred roughly 16 hours ago, involving nearly 54 million XRP directed to a Ripple-activated address.
This was followed by a second transaction of 120 million XRP, also to a company-activated address. The final transfer involved sending just under 29 million tokens, worth around $14.5 million, to Bitstamp, potentially indicating a sale of the tokens.
It’s important to highlight that these recent XRP transfers by Ripple may not be linked to the recent legal actions with the SEC. Ripple’s practice of selling substantial amounts of XRP on the open market is a long-standing one and is, in fact, a central element of the SEC’s lawsuit. The SEC contends that XRP represents an investment contract offer and accuses Ripple of conducting an unregistered securities offering.
In the meantime, the value of XRP seems to have remained largely stable despite these events, showing a minor decline of about 0.1% to $0.501. This movement is relatively consistent with the general trend observed in the wider cryptocurrency market.