SEC vs. XRP: Ripple Resists SEC’s Demands for Late Discovery in Ongoing Legal Battle
Ripple, the well-known blockchain payments company, is standing up to the U.S. Securities and Exchange Commission (SEC) in the ongoing legal dispute surrounding XRP. In a recent development, Ripple has objected to the SEC’s latest request for post-complaint discovery, arguing that it is untimely and unrelated to the case.
The disagreement between Ripple and the SEC escalated as Ripple filed a response opposing the SEC’s motion. The SEC is seeking additional documents and answers from Ripple, including audited financial statements for 2022 and 2023, details of post-complaint XRP transactions with non-employee parties, and information about the revenue generated from XRP institutional sales after the complaint was filed.
Ripple firmly contends that these requests are not only untimely but also irrelevant to the case. The company points out that the SEC had ample opportunity to request this information during the open fact discovery phase but failed to do so. Consequently, Ripple argues that the SEC lacks legitimate grounds to demand such data now.
The crux of Ripple’s opposition lies in the timing and relevance of the SEC’s demands. Ripple emphasizes that the SEC’s requests come after the fact discovery phase has concluded, except for a limited scope granted by the Court. Moreover, Ripple highlights that the SEC’s demands exceed the 25 interrogatory limit under Rule 33 and that addressing post-complaint conduct is not pertinent to the case.
Ripple’s stance is that delving into the legality of its post-complaint XRP sales could result in unnecessary and protracted side litigation. This viewpoint aligns with the sentiment among the XRP community, which closely follows the lawsuit and eagerly anticipates a resolution in 2024.