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

Market News

Stock Market Analysis: Is NVDA Losing Its Leadership?

Since the beginning of the week, the S&P 500 Index (US500) has seen a modest increase of about 0.58%, whereas NVDA’s share price has experienced a decline of approximately 3.8%. This recent divergence raises concerns among Nvidia stock investors — could it signify a loss of NVDA’s market leadership?

Industry News

ESG: Australian regulator wins first greenwashing court case against Vanguard

Vanguard admitted that a notable portion of the securities within both the Index and the Fund did not undergo the promised ESG scrutiny.

Fintech, Uncategorized

BitMEX integrates HALO from Solidus Labs for cross-market surveillance

““The recent approval of the Spot Bitcoin ETF has piqued the market’s interest. As a result of price volatility, the trading volumes for crypto derivatives have gone up substantially. HALO, with its advanced technology and crypto-native detection architecture, will enable BitMEX to smoothly and safely scale trade surveillance across its increased trading volumes and provide the necessary safeguards for new product launches.”

Reviews

IUX Broker Review

IUX, recently rebranded from IUX Markets, stands as a multi-asset Forex broker recognized for its regulatory compliance across various jurisdictions.

Industry News

Horizon Software rebrands to Horizon Trading Solutions

“Horizon Trading Solutions has seen accelerated global growth over the past year to meet the rising demand for our trading solutions and built-for-purpose technology offering. The choice to rebrand represents a key part of this development, while maintaining our heritage and history in the industry.”

Market News

USDJPY has surged to levels last witnessed in 2022. Should we consider opening a short position?

The recent resurgence of the US dollar has propelled USD/JPY to new heights, touching levels not seen since 2022. This surge comes against the backdrop of stable short-term yields and ongoing economic data that fails to signal a significant slowdown, prompting questions about the extent of current monetary easing measures.

Digital Assets

DED Trends on Twitter After Memecoin Snapshot Announcement

Polkadot-backed community coin #DED, made it to the trending charts on X, demonstrating community’s engagement and interest behind the memecoin. 

Digital Assets

BlockDAG Presale Nears $10 Million Amid Toncoin’s Momentum, Green Bitcoin’s Presale, and the Rise of Other Top Cryptos

This article will examine three top trending topics: Toncoin’s potential, Green Bitcoin’s innovative presale, and BlockDAG’s sustainable mining approach. These cryptocurrencies take centre stage for their uniqueness and innovation.

Digital Assets

Coinbase scores minor victory vs SEC, but lawsuit to proceed

A federal judge in Manhattan, U.S. District Judge Katherine Polk Failla, ruled on Wednesday that the U.S. Securities and Exchange Commission’s (SEC) lawsuit against Coinbase can largely proceed.

<