Crypto News – SEC Accuses Ripple of Attempting to Conceal Financial Data in Remedies Briefing

SEC Accuses Ripple’s Attempt to Conceal Financial Data in Remedies Briefing

Crypto News- In a recent court filing on May 20, the US SEC has voiced strong objections to Ripple’s attempt to redact crucial evidence in their remedies briefing.

While acknowledging Ripple’s right to seal certain exhibits, the SEC vehemently argues that Ripple’s move to hide financial and securities sales information is blatantly unlawful. According to the Securities and Exchange Commission, these details are pivotal to the remedies sought.

The SEC emphasizes:

“Ripple has been conclusively found to have sold investment contracts without fulfilling registration requirements or necessary disclosures. Yet, Ripple persists in its endeavor to conceal information vital for the sale of these securities.”

Securities and Exchange Commission’s Demand for Transparency

The SEC insists on the disclosure of Ripple’s business information to the public. Under the leadership of Gary Gensler, the Commission contends that Ripple should have publicly disclosed the financial information and pricing it now seeks to obscure.

According to the Securities and Exchange Commission, the law mandates the disclosure of 32 categories of information in a registration statement, encompassing audited balance sheets, profit and loss statements, and offering specifics such as pricing and prior offerings.

Consequently, the Securities and Exchange Commission rebuffs Ripple’s claim of harm from disclosing information mandated by law.

Furthermore, the Securities and Exchange Commission rebukes Ripple’s argument that it’s a private company, stating:

“Ripple has relinquished its privacy interest in vital information required by securities laws for the ability to raise capital publicly. Congress has deemed the disclosure of such information to be in the public’s interest when a company makes that choice.”

Regulatory Clash: Diverging Views on Penalties

This latest development in the ongoing case against Ripple underscores the regulatory clash. As the case nears its resolution, the Securities and Exchange Commission seeks a hefty $2 billion fine against the crypto company. Ripple, however, deems this request baseless and advocates for a penalty not exceeding $10 million.

In its first-quarter report for this year, Ripple expressed confidence in the fairness of the judge’s approach to the remedies phase.

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