SEC and Ripple Legal Drama Moves Ahead as SEC Demand Another Compelling

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Ripple is one of the known exchanges which is in legal trouble again with the Securities and Exchange Commission. SEC has filed a motion to compel Ripple to produce financial statements for the year 2022-2023 and also it has post-complaint contracts governing “institutional Sales”.

SEC’s Motion to Compel

This intense drama between Ripple and SEC is moving ahead when SEC filed its request on 11 January asking the court to order Ripple to hand over financial statements and sales contracts. 

The letter has been sent to the Southern District of New York Magistrate Judge Sarah Netburn which comes long after examining by Judge Analisa Torres passed down her summary judgment in the case, who is partly known to be on the Ripple side.

Torre’s ruling on July 13, 2023, has nodded its head as Ripple has violated section 5 as it offered and sold securities in unregistered transactions when it sold XRP directly to certain primarily institutional buyers, hedge funds, and ODL customers.

Judge Torres encountered that Ripple illegally sold approximately $729 million in XRP via these sales, reasoning, among other things, that certain provisions in the Institutional Sales contracts support the conclusion that the parties did not view the XRP as a sale of a commodity or a currency.