Ripple: Judge allows SEC to continue “bully tactic” via MoU request
“The real reason the SEC uses the MOU’s is to intimidate and ruin business relationships between Defendants and the subjects of the “requests”, said Attorney Jeremy Hogan.
The court has ruled in favor of the SEC’s ‘extra-judicial tactics’, as Ripple called it. The regulator has sent several MOU requests across the world in an attempt to seek discovery from businesses Ripple is or has worked with.
According to Ripple Labs, from the 30 different entities and individuals SEC has sent requests, “more than 20 of the MOU targets reside in jurisdictions where local regulators have determined that XRP is not a security (Japan, UK, and Singapore).”
At the time, the defendants also argued the SEC is “deploying extra-judicial tactics that are not available to Defendants or other litigants and should not be available to the SEC here.”
Still, the Judge ruled to allow the SEC to continue to use the MOU process, while ordering the regulator “to produce all documents obtained in response to the Requests.”
“In addition, to improve transparency in the process, the SEC is ordered to produce copies of all previously served Requests within 14 days and produce any subsequent Requests within 14 days of their service. To the extent the SEC believes it has a proper claim of privilege, it must simultaneously produce a privilege log.”
Attorney Jeremy Hogan, who has been covering the lawsuit since the beginning, has commented on the documents made public by Attorney James K. Filan.
“My initial impression after the hearing was correct: The Judge rules in the SEC’s favor on the MOU issue. I believe this is the wrong ruling and shows the Judge does not understand what is truly going on with those requests. Also, why did this 2-page order take 3 weeks to draft?
“Yes, there is a disclosure requirement – but the real reason the SEC uses the MOU’s is to intimidate and ruin business relationships between Defendants and the subjects of the “requests.” It’s this bully tactic we need Judges to stop and it irritates me greatly.”
A number of motions have been filed, back and forth, throughout the weeks. Ripple’s co-founders have filed to dismiss the complaints against them individually.
The SEC, however, charged back against them, doubling down on the accusations in a recent memorandum of law stating they understood the nature of the asset, XRP.
Prior to that, Ripple had put the SEC to shame in the latest legal round by exposing their omissions and misrepresentation of the Judge in the SEC’s motion to strike Ripple’s lack of due process and fair notice affirmative defense.
A few days ago, the SEC filed another objection to XRP holders’ Motion to Intervene, arguing they are “no friend” to the court. This has raised, once again, indignation among XRP holders.