Ripple forced to deliver XRP evidence that supports SEC case

Rick Steves

“Ripple is ORDERED to conduct a reasonable search of the relevant video and audio-taped recordings and produce responsive documents.”

After a week of silence, Judge Netburn has ordered Ripple to search for and turn over video and audio recordings of the firm’s internal meetings.

The SEC’s motion to compel was granted as expected after an extensive back and forth between both parties.

Ripple argued that the plaintiff’s “boil-the-ocean demand” was “flatly incompatible with the federal rules” as well as the SEC’s claim that the recordings will prove XRP was sold as securities is “sheer conjecture”.

The SEC said 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.

Attorney Jeremy Hogan, who has been commenting on the SEC v. Ripple lawsuit right from the start, said last month that the recordings dispute was “not looking good for Ripple” and that they will form the backbone of the SEC case and that is why that whether it is able to gain access to more recordings is very important to the lawsuit.

He also predicted that the Judge would rule in favor of the SEC’s motion with limitations and he was right. The order is transcribed below:

“Ripple’s search of its recorded meetings has been inadequate under the circumstances. While the Court recognizes that a human review of the recordings may be unreasonable, a reasonable search could include automated transcriptions of recordings (similar to the common technology used to transcribe voicemail messages) and the use of search terms.

“Accordingly, Ripple is ORDERED to conduct a reasonable search of the relevant video and audio-taped recordings and produce responsive documents. Because Ripple represents that it has more than 4,000 recordings, the parties are ORDERED to meet and confer to determine whether there are particular time periods when recordings are most likely to be responsive to the SEC’s discovery demands.

“For example, meetings in the weeks preceding dates of significance may generate more probative material than meetings held at other times. Similarly, cross-references with the calendars for the Individual Defendants or other key employees may identify meetings of significance.

“In light of the close of discovery, Ripple is order[ed] to undertake such efforts without delay.”

This can be considered a major win for the SEC as the evidence found in Ripple’s recordings is likely to beef up the agency’s case that the defendants sold and marketed XRP as an investment contract. This is the plaintiff’s main argument against Ripple.

On the other side, Ripple’s main argument in its favor is that the SEC failed to provide fair notice that the sale of XRP could be construed as an investment contract.

The lack of fair notice is something the whole crypto ecosystem has been complaining about for years as the regulatory framework for digital assets remains unclear and the SEC has been only regulating by enforcement or via “personal opinions” from its officials.

Attorney Jeremy Hogan commented on the ruling: “Remember, an Order like this might give the SEC some bullets for its gun (and vice versa when Ripple wins), but the next BIG Order is on the SEC’s motion to strike the Fair Notice Defense. THAT is the bazooka!”


Read this next

Retail FX

DefiniteArea Review – Is This Broker Any Good?

Read our DefiniteArea review today to learn all you need to know about DefiniteArea before signing up with the broker (

Industry News

Playtech to close Finalto sale to Gopher in two weeks

Playtech, the London-listed gambling software developer, today said it expects to close the divesting of its financial trading division Finalto by mid July 2022.

Retail FX

eToro valuation halved as SPAC merger deadline expires

The deadline for the completion of the SPAC merger of eToro had passed yesterday, June 30, and the Israeli broker apparently canceled the deal with Betsy Cohen-backed blank-check firm.

Institutional FX

FXSpotStream reports second best figure for monthly volumes

Trading volumes on institutional FX platforms surged in June after fears over the impact of Russia’s military invasion of Ukraine sent speculative asset classes reeling.

Retail FX

Vantage expands MT5 offering with access to new stocks

ASIC-regulated foreign exchange brokerage Vantage has expanded its service offering and trading products by incorporating new markets, namely 14 exchange-based stocks on MetaTrader 5.

Digital Assets

CFTC charges $1.7 billion Bitcoin scam, largest to date

Mirror Trading accepted at least 29,421 Bitcoin from approximately 23,000 investors from the United States and even more throughout the world.

Retail FX

Spotware Systems upgrades cTrader Desktop to version 4.3

Spotware Systems, a technology provider for the electronic trading industry, has launched an updated version of its cTrader Desktop, which adds new functionality to join a roster of advanced trading capabilities.

Digital Assets

OKX launches Block Trading for tighter pricing

With Block Trading, users can integrate spot and derivatives trades on the same platform and trade multiple currencies in a single trade. The service supports trading of perpetual swap, futures, and option contracts with popular altcoins as the underlying.

Industry News

Interactive Brokers pays $1 million to settle with CFTC

Interactive Brokers overcharged its customers a total of $710,828.14.