Magistrate Judge Sarah Netburn issued the request on behalf of the SEC, demanding that Ripple respond to inquiries regarding the amount of income generated from institutional sales of XRP. Ripple’s lawyers attempted to argue that the company’s financial condition was irrelevant to the case, but the court rejected their argument, stating that the requested information is crucial for the investigation, potential compensation, and assessment of the need for an injunction.
The lawsuit against Ripple, along with its executives Brad Garlinghouse and Chris Larsen, was initiated by the SEC around three years ago. The SEC alleged that Ripple raised $1.3 billion in 2020 through the sale of XRP. In a significant development in 2023, Judge Analisa Torres ruled that sales of XRP to companies were illegal securities sales, while sales of XRP to retail investors did not violate securities laws.
This ruling was seen by crypto enthusiasts as a partial victory for Ripple against the SEC. The SEC later dropped charges against Ripple executives in October, further shaping the ongoing litigation.
Ripple CEO Brad Garlinghouse took the opportunity to criticize the SEC and its Chairman Gary Gensler during the World Economic Forum in Davos. Garlinghouse accused the SEC of being hostile to the crypto industry and labeled Gensler’s regulatory approach as ineffective.
A trailer for the documentary “XRP Unleashed,” which focuses on the legal battles between Ripple and the SEC, recently surfaced on the internet. This film aims to shed light on the story behind the ongoing legal saga.