In the case SEC v. Ripple rejected the court’s request from the U.S. Securities and Exchange Commission (SEC) for personal financial records of Ripple’s executives not linked to XRP. The court says it is “not convinced” that personal bank accounts would show the violations as alleged by the SEC.
Another win for XRP in SEC v Ripple Case
In the lawsuit filed by the U.S. SEC against Ripple Labs, CEO Brad Garlinghouse, and co-founder Christian Larsen over the sale of XRP tokens, the court dismissed the SEC’s request for personal financial records of the accused who did not comply with XRP unrelated, obtainable, denied. The order was signed Friday by Magistrate Judge Sarah Netburn.
“The SEC served the individual defendants with Requests for Production seeking their personal financial records over a period of eight years,” the order explains. It adds that the commission ” also issued a third party summons to various financial institutions where the individual defendants keep accounts and look for similar records. ‘
The order states: ‘Garlinghouse and Larsen are campaigning for a protective order to avoid their discovery obligation and to file the summonses to SVB Financial Group, First Republic Bank, the New York Federal Reserve Bank, Silver Lake Bank, Silvergate Bank and Citibank is meant to end. , AFTER The motion is granted. ”
With reference to section 5 of the Securities Act, which sets out that all issuers must register non-exempt securities with the SEC, the order reads:
The court is not convinced that the personal bank accounts will show (or even show) what the SEC claims they would do – individual violations of section 5.
The judge also found that “the SEC provided no evidence that individual defendants had hidden transactions or that the documents were the derivation of hidden transactions.”
The judge further explained that the motion for a protection order was granted by Garlinghouse and Larsen because ‘the court finds that the SEC’s requests for the individual defendants’ personal financial records, in addition to the records of XRP transactions already promised , is not. relevant or proportionate to the needs of the case. The judge ruled further:
The SEC will withdraw its Production Requests to retrieve the personal financial records of the individual defendants and withdraw its subpoenas from third parties.
“If the SEC, as the discovery progresses, reveals evidence that the individual defendants did not have records of their XRP transactions, it can provide the evidence to the court and renew the application,” the order reads. The full court submission can be found here.
Ripple recently received a discovery from the SEC and the commission was ordered to set internal records on bitcoin, ether and XRP. Meanwhile, a petition has been launched asking the SEC’s new chairman to drop the Ripple case and end the war against XRP.
What do you think of the judge in favor of Ripple against the SEC over personal financial records not related to XRP? Let us know in the comments below.
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