Home Altcoins News Ripple’s Legal Battle with SEC Escalates as Company Counters Alleged SEC Misrepresentations

Ripple’s Legal Battle with SEC Escalates as Company Counters Alleged SEC Misrepresentations

In a pivotal move that could shape the future of the legal battle between Ripple Labs Inc. and the U.S. Securities and Exchange Commission (SEC), Ripple has submitted a motion to file a sur-reply, aiming to correct what it calls “significant factual mischaracterizations” by the SEC. The proceedings, currently before Judge Sarah Netburn of the Southern District of New York, have reached a critical juncture.

The SEC has made requests for audited financial statements from Ripple for the years 2022-2023 and documents detailing the sale or transfer of XRP to entities beyond its employees. Furthermore, the SEC is seeking information about the proceeds from institutional sales of XRP following the initiation of the lawsuit. Ripple had previously objected to these requests, leading to a legal standoff between the two parties.

Ripple’s latest legal maneuver, the motion to file a sur-reply, underscores the company’s determination to set the record straight, particularly in response to what it perceives as inaccuracies in the SEC’s submissions. Ripple’s counsel contends that the SEC’s portrayal of Ripple’s resistance to producing certain post-complaint contracts is misleading. The motion clarifies that Ripple objected to the SEC’s request as “overly burdensome,” challenging the SEC’s narrative and emphasizing the dispute over the burden of document production.

One key point of contention highlighted in the sur-reply motion is Ripple’s disagreement with the SEC’s claims regarding the extent of contract documentation provided in the related class action suit, Zakinov v. Ripple Labs Inc. The SEC had asserted that Ripple had cataloged and produced all XRP sales contracts from 2020 to June 2023 in the ongoing class action suit. Ripple unequivocally refuted this claim, stating that it did not produce any contracts post-dating December 22, 2020, in Zakinov.

Ripple’s counsel also pointed out what they perceive as the SEC’s overreach in its discovery requests. The SEC sought contracts beyond those related to On-Demand Liquidity (ODL), referencing contracts with vendors, consultants, independent contractors, grants, donations, and other counterparties. Ripple argues that these contracts fall outside the scope of the court’s summary judgment, which held that “Other Distributions” are not sales of investment contracts.

In seeking the court’s permission to file the sur-reply, Ripple aims to ensure that the court’s decision is based on an accurate understanding of the facts, especially in light of what it claims are the SEC’s false assertions. The motion states, “The Court would benefit from the sur-reply letter because it will clarify the issues in dispute and allow the Court to rule on an accurate record.

In seeking the court’s permission to file the sur-reply, Ripple aims to ensure that the court’s decision is based on an accurate understanding of the facts, especially in light of what it claims are the SEC’s false assertions. The motion states, “The Court would benefit from the sur-reply letter because it will clarify the issues in dispute and allow the Court to rule on an accurate record.”

Meanwhile, amidst these legal developments, the price of XRP has experienced a decline, currently trading at $0.51095. Analysts are closely watching the situation after the drop below the 0.618 Fibonacci retracement level ($0.552), signaling an exit from the previous trading range. Attention is now focused on the $0.498 mark (0.786 Fibonacci level), with the market awaiting a potential breakout that could significantly influence XRP’s short-term trajectory.

Meanwhile, amidst these legal developments, the price of XRP has experienced a decline, currently trading at $0.51095. Analysts are closely watching the situation after the drop below the 0.618 Fibonacci retracement level ($0.552), signaling an exit from the previous trading range. Attention is now focused on the $0.498 mark (0.786 Fibonacci level), with the market awaiting a potential breakout that could significantly influence XRP’s short-term trajectory.

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Maheen Hernandez

A finance graduate, Maheen Hernandez has been drawn to cryptocurrencies ever since Bitcoin first emerged in 2009. Nearly a decade later, Maheen is actively working to spread awareness about cryptocurrencies as well as their impact on the traditional currencies. Appreciate the work? Send a tip to: 0x75395Ea9a42d2742E8d0C798068DeF3590C5Faa5

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