Judge Orders Ripple Disclose XRP Sales Info to SEC

BySamson Ononeme

Feb 6, 2024 , ,
A court order now requires Ripple to produce financial documents and details of institutional XRP sales to the SEC following its 2020 lawsuit ruling the firm liable for billions in unregistered offerings.

Key Insights

  • Judge orders Ripple to provide SEC financial data and details on institutional XRP sales since 2020
  • Request follows ruling that Ripple liable for $1.3 billion in unregistered token offerings before SEC lawsuit
  • SEC says records will help decide if injunctions or fines warranted for period after case was filed

NEW YORK (MarketsXplora) – Ripple Labs has been directed to provide the U.S. securities regulator with financial records and details on institutional sales of its XRP token since 2020, according to court filings released on Monday.

U.S. Magistrate Judge Sarah Netburn signed an order that compels the crypto firm to produce 2022-2023 financial statements plus contracts related to institutional XRP transactions.

The Securities and Exchange Commission (SEC) requested the records in January to help decide on whether to seek injunctions or fines against Ripple after it was found liable last year for conducting $1.3 billion of unregistered XRP securities offerings.

Ripple had opposed the request as too broad and irrelevant given the recent partial judgment that said only certain institutional XRP sales broke the law, not all transactions involving the token.

But Netburn granted the SEC access to information to aid its proposal of post-2020 remedies, though the scope she allowed was narrower than first sought by the regulator.

The SEC filed a lawsuit against Ripple and top executives in December 2020 alleging they raised over $1.3 billion through unregistered XRP digital token offerings over seven years.

In a partial judgment last July, U.S. District Judge Analisa Torres ruled Ripple liable for conducting those sales but found the SEC had failed to establish that wider XRP distributions were similarly non-compliant.

The case is seen as a test of the crypto asset market’s arguments that digital tokens can function both as a store of value and a medium of exchange.

Samson Ononeme

Meet Samson Ononeme, a dynamic writer, editor, and CEO of marketsxplora.com. With a passion for words and a sharp business acumen, Samson captivates readers with captivating storytelling and delivers insightful market analysis. He is a trailblazer in the finance industry, empowering individuals with knowledge and shaping the narrative of money. Get ready to be inspired by his literary prowess and entrepreneurial leadership.

Leave a Reply