It’s Ripple’s fault, says the SEC on recordings of XRP sales meetings

Rick Steves

The SEC’s bad timing – we’re close to the discovery deadline – may work in favor of Ripple’s interests, but the Judge is expected to compel Ripple to produce evidence that will form the backbone of the SEC’s case.

The dispute over Ripple’s recordings continues.

The SEC wants to get a deeper look at what went down on key meetings that involved Chris Larsen and Brad Garlinghouse as well as other employees.

The agency plans to use the recordings as evidence that Ripple knowingly and recklessly marketed and sold XRP as an investment contract, therefore, a security.

Time is running out as the discovery deadline is fast approaching and that is to Ripple’s advantage, but the court may still allow a limited search that could bring out new and compromising revelations.

The SEC has stated before that the recordings it already has in its possession are key to its claims against Ripple in court.

The plaintiff has recently filed a reply in support of its letter seeking an order compelling Ripple to conduct a “reasonable search” of relevant video and audio-taped recordings of internal Ripple meetings.

The SEC argued that Ripple’s conduct necessitated this motion: “Ripple failed to search its library of recordings—or even inform the SEC that it was withholding responsive recordings—until its former Chief Compliance Officer testified in the last month of fact discovery that Ripple maintained such recordings.

“In its prior motion to the Court concerning recordings, the SEC expressly reserved the right to seek the Court’s intervention as to the scope of Ripple’s search for responsive documents if the parties could not reach

“And indeed Ripple’s search is not reasonably designed to identify responsive recordings as to the 33 agreed custodians. Ripple has chosen to maintain some recordings in generically-named locations and claims that a comprehensive search of such locations for all responsive documents is burdensome.

“For example, Ripple claims there are “over 200” recordings with generic meeting titles but that somehow reviewing each one is not reasonable. Ripple need only have the recordings transcribed and then search the transcribed text to conduct an efficient and effective search”, the SEC argued, adding that Ripple does not seriously challenge the relevance of the recordings.

The SEC also asked the court to deny Ripple’s request to seal the transcripts of audio and video-taped recordings. “The documents have the tendency to influence the Court’s ruling on the discovery dispute before it, and no countervailing business or privacy interests outweigh their disclosure to the public”, the agency argued.

We have recently covered Ripple’s attempt to stop the SEC from getting those recordings, but even XRP community-friendly attorney Jeremy Hogan has said the recordings dispute is “not looking good for Ripple” and “will form the backbone of the SEC’s case.”

The most searched Ripple and XRP stories this week: 

Ripple’s XRP on the spot: Crypto Mom’ points to SEC’s inability to articulate why an asset is a security

SEC v. Ripple: Recordings dispute “not looking good for Ripple”

Ripple’s nearly 30,000 questions could break the SEC’s number one claim

Ripple’s XRP stands to gain with crypto payments adoption at 45% by 2023

SEC v. Ripple: What’s next on the XRP lawsuit agenda?

Ripple running out of time as BIS ‘conspires’ to end cryptos’ threat to financial system

Ripple lawsuit raises hopes as ‘Crypto Mom’ condemns SEC policy

Ripple scores major win as Judge finds out if SEC lied to court

Ripple calls negligence as SEC seeks $1.38 billion from XRP lawsuit


Read this next

Institutional FX

Integral also grapple with weak FX volumes in December

Foreign exchange trading volumes dropped in December across Integral’s trading platforms as many traders were away on annual leave and currency markets saw a relatively quiet period. December volumes outpaced those of last year, though turnover is still down month-over-month.

Digital Assets

BitMEX to turn German bank into regulated crypto products powerhouse in Europe

The historic German bank is already a leader in the application of blockchain technology and offers a range of digital assets banking services, including custody, tokenization, efficient payment transactions, and regulatory secure market access.

Industry News

CryptoUK appoints Teana Baker-Taylor as non-executive director

“CryptoUK is moving the needle on policy and regulatory framework development to ultimately build trust and protect all participants, from retail investors to the crypto industry players”

Retail FX

Skilling raises €10m to expand brokerage further after triple-digit growth in 2021

“This fundraising round represents the beginning of the next phase of Skilling’s growth as we further assert ourselves in the fintech industry”

Industry News

oneZero adds two more FX veterans, Indu Maheshwari and Kevin Verardi

The news of Indu and Kevin’s appointments comes a month after Jim Sullivan was announced as the company’s General Counsel, where he will be responsible for the company’s global legal function, based in New York.


Pareto Securities goes live with Broadridge’s OMS for low and high touch agency trading

The solution combines order management, market connectivity and smart order router (SOR) components developed by Itiviti, which was acquired by Broadridge last year in a $2.5 billion deal.

Retail FX

INGOT Brokers taps Acquity and Signal Centre for MT4/5 EAs and news analytics

INGOT Brokers is helping traders cut through the noise and get a clearer picture of the emerging market trends as well as better spot trading opportunities with AI-powered signals.

Digital Assets

Can the Ripple lawsuit be traded with Wrapped XRP to circumvent XRP delisting in US?

wXRP is a derivative product that is pegged to the digital asset that the SEC claims to be a security in what has been dubbed “the cryptocurrency lawsuit of the century”.

Digital Assets

e-CNY wallet downloads swell, but actual usage disappoints

China’s central bank has released a wallet app for payments and money transfers using the digital yuan earlier this month. Although the e-CNY wallet was the most downloaded app in January, but according to a Reuters report the actual use in transactions has been far less impressive.