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


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.