SEC v. Ripple: Ripple refuses to deliver sensitive documents and tells Judge why

Rick Steves

“The SEC’s disproportionate request is also unreasonably duplicative of Ripple’s extensive production of over one million pages of discovery—including emails, documents, text messages, and responsive Slack messages for 33 custodians.”

new york

The SEC v. Ripple lawsuit is likely to present regular updates throughout the rest of the month up until August 31, the deadline for the fact discovery (lawsuit agenda).

The Court will be forced to rule on privilege issues as the parties don’t see eye to eye on that matter, with the SEC nearly all of its internal documents regarding XRP and ETH to be kept from the Defendants’ hands.

Yesterday, Ripple formally opposed the SEC’s motion to compel the Defendants to deliver terabytes of Slack communications.

“The SEC’s extraordinary demand calls for an extensive and costly fishing expedition that would likely take months to complete and come at very significant cost. The SEC’s disproportionate request is also unreasonably duplicative of Ripple’s extensive production of over one million pages of discovery—including emails, documents, text messages, and responsive Slack messages for 33 custodians”, said the letter.

“The SEC’s Letter-Motion downplays the substantial discovery the SEC has already received fromRipple as well as the reasonable offer of compromise that Ripple made to produce additional Slack messages from nine custodians that—unlike the SEC’s proposal— focuses on more significant custodians with high Slack usage levels. Ripple has already begun its review and production of that data, recognizing the upcoming close of fact discovery. Yet, the SEC rejected Ripple’s reasonable offer and instead decided to seek additional Slack data from custodians who were not deponents or likely trial witnesses or were not frequent users of Slack. Accordingly, the SEC’s motion should be denied and Defendants’ compromise position should be adopted by the Court”.

Ripple also filed a motion to seal exhibits attached to the SEC’s motion and its own opposition to the SEC’s motion so that its Slack communications remain confidential for its “sensitive business information”.

Today, the SEC will respond to Ripple’s motion for a discovery conference regarding the SEC’s improper assertion of the deliberative process privilege, and any motion to seal exhibits filed with that motion.

SEC v. Ripple: SEC caught erasing relevant documents for XRP lawsuit

Attorney Jeremy Hogan has recently analyzed each counsel strategies for the SEC v. Ripple lawsuit, with the SEC aiming to attack from the flank and claim Ripple marketed XRP as a security, therefore the company and the individual defendants conducted an unregistered securities offering.

SEC’s Commissioner Peirce – who has been publicly stating there is currently no regulatory clarity for the crypto asset space – has recently said in an interview that an asset doesn’t have to be a security in order to be sued by the SEC.

Still, Peirce’s admission of lack of clarity can still be a “gift from the heavens” for Ripple as its main defense is that there was no fair notice.

In the meantime, Congress is stepping up and discussing amendments that could bring clarity to the ecosystem. The bill proposal, however, seems to indicate that XRP would not be subject to the SEC, according to attorney Thien-Vu Hogan.



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.