A federal judge ruled that Ripple must disclose its financial records and details of XRP sales in the SEC’s lawsuit over an unregistered securities offering.
Judge Sarah Netburn ruled in favor of the SEC, ordering Ripple to disclose its financial statements for 2022-2023. The decision aims to shed light on Ripple’s financial dealings and the impact of its post-complaint contracts and institutional XRP sales on the case’s outcome.
“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,” Netburn said.
🚨NEW: The @SECGov has won its motion to compel @Ripple to produce its 2022-2023 financial statements, post-complaint contracts governing institutional sales of $XRP, and answer questions regarding the amount of $XRP institutional sales proceeds it received. 👇🏼 pic.twitter.com/lyPBSBZcJi
— Eleanor Terrett (@EleanorTerrett) February 5, 2024
You might also like: Crypto assets saw $708m inflows last week; Bitcoin and Solana lead
Ripple must also produce documentation related to its contracts and institutional XRP sales proceeds following the SEC’s complaint filing. The court refuted Ripple’s concerns about the potential for a mini-trial, highlighting the importance of these documents in determining appropriate injunctions and civil penalties.
“Because the SEC has made a sufficient showing that this information may assist the court in fashioning its remedy, Ripple must respond to the interrogatory,” Netburn said.
The directive is part of a broader legal conflict that started in 2020 when the SEC accused Ripple Labs of executing an unregistered securities offering worth $1.3 billion. Despite Ripple’s argument that the SEC’s request was “untimely” and “irrelevant,” the court has set a Feb. 12 deadline for discovery related to the case’s potential remedy.
The case has seen varied rulings, including a July 2023 decision by Judge Analisa Torres, which found that Ripple’s institutional sales of XRP constituted a securities offering, albeit programmatic sales did not.
Read more: XRP falls as Ripple clashes with SEC, InQubeta presale draws investors
