Crypto News– A judge has granted the U.S. Securities and Exchange Commission (SEC) request for Ripple to provide specific information, despite the conclusion of the SEC’s case against Ripple.
Ripple Ordered to Submit Financial Statements Upon SEC’s Demand
The SEC sought financial statements, contracts, and a response to an interrogatory on January 11 to assess penalties and remedies. In a filing on February 5, U.S. Magistrate Judge Sarah Netburn ruled in favor of the SEC on all counts. She emphasized that a separate District Judge will determine remedies based on available information, stating that denying access to pertinent information could disrupt this process. Consequently, Ripple was ordered to furnish financial statements from 2022 and 2023.
Judge Netburn also instructed Ripple to provide post-complaint contracts governing institutional sales, despite Ripple’s assertion that its post-complaint actions adhere to court rulings, thus rendering injunctions unnecessary. Judge Netburn disagreed, asserting that the SEC should be allowed to contest this claim based on the provided records.
The majority of the Ripple case concluded in 2023
The SEC initially filed charges against Ripple in December 2020. In 2023, both Ripple and the SEC received favorable partial rulings. Judge Analisa Torres determined that many of Ripple’s programmatic XRP sales, including those on retail exchanges, did not constitute securities offerings. However, she ruled that institutional XRP sales were indeed unregistered securities offerings.
Ongoing proceedings are tasked with determining the penalties Ripple may owe for these institutional sales. While the latest decision does not alter past rulings, it does bolster the SEC’s position to advocate for penalties and remedies.
By late 2023, reports indicated that the SEC was seeking to impose a $770 million fine on Ripple, although some experts speculate the final amount could be lower.
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