SEC v. Ripple: CEO Brad Garlinghouse seeks info on XRP sales from Binance

Rick Steves

“The SEC’s failure to allege domestic offers and sales should be fatal to its claims for the reasons set out in the motion to dismiss.”

In the context of the SEC v. Ripple lawsuit, in which the agency claims individual defendants Brad Garlinghouse and Chris Larsen aided and abetted in the sale of unregistered securities, the Ripple chief executive officer has filed a motion to obtain international discovery.

The individual defendant is seeking to obtain documents from Binance Holdings Limited, the cryptocurrency exchange operator, according to the documents.

“Mr. Garlinghouse seeks foreign discovery on the basis of his good faith belief that the listed entity possesses unique documents and information concerning this case, and specifically, concerning the process by which transactions in XRP allegedly conducted by Mr. Garlinghouse on foreign digital asset trading platforms were conducted.”

SEC v. Ripple: XRP is not subject to SEC under pending bill, said attorney Thien-Vu Hogan

The SEC alleges that the Ripple CEO sold more than 357 million units of XRP to “public investors in the market”. The agency seeks disgorgement based on the sales, including those sales made on digital asset trading platforms located outside the United States.

The letter states that, according to the law, disgorgement applies only to domestic sales of securities and the sales of XRP were “overwhelmingly made on digital asset trading platforms outside the United States”.

“The SEC’s failure to allege domestic offers and sales should be fatal to its claims for the reasons set out in the motion to dismiss.”

Brad Garlinghouse, Chief Executive Officer at Ripple and one of the two individual defendants in the lawsuit, seems to be planning to use the documents provided by Binance as proof that most sales of XRP formally took place outside the United States, the only jurisdiction that matters for the SEC.

These documents will be used to fight damage claims as the agency has no jurisdiction over the sales of securities outside the country. Whether XRP is a security or not is a different matter, which is yet to be answered in court or Congress.

In the meantime, the Securities and Exchange Commission has added a new trial lawyer to its team, attorney Pascal Guerrier. It seems that news settled a discussion among two prominent lawyers over the chances of an early settlement.

Attorney Jeremy Hogan argued a settlement was around the corner. He made his case based on a string of events – which he called “strange things” – that have been taking place since June and even led him to suspect the deposition of ex-SEC Director William Hinman on July 27 didn’t even happen.

Attorney James K. Filan saw things differently: “I don’t think there are any indications that either party will go quietly into the night, whether it’s on Howey, aiding and abetting or the fair notice defense.”

Read this next

Uncategorized

Moscow Exchange reports $350 billion in November FX volumes

FX trading volumes continued its upward momentum at Moscow Exchange (MOEX) during November, buoyed by a steady rise in volatility coupled with a multi-year effort to bring new business to the platform.

Retail FX

Interactive Brokers’ volumes continue growth trajectory in November

Interactive Brokers LLC (NASDAQ:IBKR) has announced higher trading volumes in November, dwarfing the metrics for October and the same period last year by 20 percent.

Retail FX

Exness trading volume hits record highs for second consecutive ‎month

FX broker Exness’ trading volumes have breached new highs in November, building on the record-breaking turnover streak from the beginning of the fourth quarter. That has been aided by the economic impact from the Covid-19 developments and inflation concerns that apparently sent investors hunting for FX instruments to limit their risk exposure.

Institutional FX

Hedge-fund legend Steven Cohen invests in Dmitri Galinov’s 24 Exchange

24 Exchange, the OTC platform backed by Fastmatch founder Dmitri Galinov, has completed a fresh fundraising round of $14.25 million at an undisclosed valuation. The recent capital injection was led by Point72 Ventures, the venture capital firm of the hedge fund titan Steven Cohen.

Digital Assets

Can Coinbase make or break XRP? – (Congress, XRP rating, JP Morgan)

According to Coinbase’s Council, XRP has the highest rating among 28 cryptos – meaning it is the closest you can get to a security: 4 out of 5.

Digital Assets

Polygon (MATIC) delves deeper into blockchain gaming by partnering with GameOn

Polygon, the Layer 2 scaling solution for Ethereum, has announced a partnership with GameOn Entertainment to build new and different types of NFT games on the network as it seeks to expand into the blockchain gaming and NFT space in a major way.

Retail FX

David Beckham to promote GemForex across Asia

GemForex makes efforts to lead in trading conditions, execution times, safety of client funds and data security, according to the FX and CFD broker holding a Mauritius Financial License.

Retail FX

InstaForex extends sponsorship deal with Borussia Dortmund after German Cup win

InstaForex provides access to trading of forex, CFDs, stocks, futures, options, and cryptocurrencies as the FX industry goes multi asset to address the needs of an increasingly demanding client base. 

Digital Assets

Treasury Secretary Yellen still cant decide on digital dollar

Treasury Secretary of the US, Janet Yellen, has said that she still is not sure whether the US should go ahead and have the digital dollar and follow the example of other major countries including China and India in introducing the same.

<