SEC v. Ripple: Fact discovery ends August 31? Probably not

Rick Steves

“In my experience, anyone who thinks this case is settling anytime soon should reconsider”, said James K. Filan, an attorney familiar with the case.

The Securities and Exchange Commission, Ripple Labs, and the individual defendants, have filed a joint motion requesting a deadline extension for fact discovery.

This may come as a frustrating turn of events for all the stakeholders within the space, from XRP holders to digital asset exchanges, to fintech firms, partners, and clients, who want this lawsuit over as soon as possible.

The motion asks the court to permit the SEC to conduct depositions of Garlinghouse and Larsen after the close of the August 31, 2021 fact discovery deadline.

The requested change in the lawsuit agenda would extend the current expert discovery deadline from October 15, 2021 to November 12, 2021.

Both plaintiff and defendants are making such request due to the unexpected illness of an attorney for one of the parties
who was integral to the Larsen deposition, and the intervening vacation schedules of other attorneys.

“Accordingly, the parties respectfully request that the Court, for good cause shown, allow them to conduct two depositions
after the close of fact discovery, on September 14 and September 20, 2021. This is the parties’ first request to conduct depositions beyond the close of fact discovery”, the motion stated.

“If the Court denies Garlinghouse’s and Larsen’s pending motions to dismiss, the Court has provided that discovery between the SEC and the Individual Defendants may continue for another 120 days”.

The current lawsuit agenda – soon to be updated – had already seen fact discovery being extended by 60 days at the request of the SEC, despite Ripple’s opposition.

“The motion to strike and motion to intervene are still pending and the expert discovery deadline will be extended to November 12, 2021. In my experience, anyone who thinks this case is settling anytime soon should reconsider”, said James K. Filan, an attorney familiar with the case.

In addition to the deadline extension request, the SEC v. Ripple lawsuit has a new update to its agenda: a telephone conference is scheduled for August 31 to discuss the pending privilege dispute.

Earlier this month, attorneys James K. Filan and Jeremy Hogan discussed the likelihood of an earlier than expected settlement.

In a recent motion filed by the SEC, the plaintiff’s counsel stated that “there is no realistic prospect that the parties will fully resolve this case for several months, if not longer”.

The most recent events in the XRP lawsuit include Ripple attacking the SEC’s contradictions using William Hinman’s deposition.

Fact discovery is coming to a close and breaking news is likely to increase in number. The most recent news relevant to the lawsuit can be found here.

Read this next

Institutional FX

PrimeXM reports lower volumes for July as summer lull bites

PrimeXM has reported weaker trading volumes for July 2022, in line with other institutional and retail platforms that saw the activity of their clients dropped compared to a month earlier.

Retail FX

FCA warns of ATFX Global Trading / ATFXcoin

In its latest clampdown against the specific type of ‘clone fraud’, the Financial Conduct Authority (FCA) has warned local investors to watch out for a company called ATFX Global Trading / ATFXcoin.

Digital Assets

CME Group to roll out options on Ether futures next month

Derivatives exchange CME Group is set to roll out options on Ether futures on September 12 in a move to bring another level of diversification to cryptocurrency traders.

Industry News, Podcasts

Finance Feeds launches Podcasts: Listen to Ep. #1 feat. Dmitri Galinov of 24 Exchange

The team at Finance Feeds are happy to announce the launch of our Podcast series, available on Spotify and other audio services and hosted by our Editor-in-Chief Nikolai Isayev.

Digital Assets

Madfish launches Yupana.Finance, the first lending protocol on Tezos

Yupana, which aims to provide a similar experience to Aave or Compound, currently supports TEZ, cTEZ, kUSD, tzBTC, uUSD, and uBTC.

Industry News

SEC charges barred broker Anthony J. Mastroianni with $1.2m fraud targeting elderly

Instead of using investor monies to generate income, Mastroianni withdrew over $486,000 of investors’ money from his firm’s bank account and used ill-gotten funds for personal expenses on luxury items, the SEC alleged. 

Digital Assets

Unizen names crypto veteran Michael Healy as chief strategy officer

CeDeFi exchange Unizen has onboarded crypto industry veteran Michael Healy, who originally worked for Wikileaks and built their android application in 2010, as Chief Strategy Officer.

Institutional FX

Sterling Trading Tech adds FX and Crypto to risk and margin system

The Risk-as-a-Service solution provides supports FX spot, forward, and swap trades and positions, in any currency pair, as well as Crypto including crypto priced in any currency.

Interviews, Metaverse Gaming NFT

Exclusive: Wayne Marcel explains FIO Protocol amid fight against fraud on NFT markets

It’s been 12 years since Satoshi Nakamoto released the white paper that introduced Bitcoin to the world.