SEC Legal Victory: Agency Scores Against Ripple

Crypto News – In the SEC’s ongoing lawsuit against Ripple Labs, the US District Court for the Southern District of New York has rendered a crucial decision in the agency’s favor.

SEC Legal Victory: Agency Scores Against Ripple

The Magistrate Judge, Sarah Netburn, moved for a compelling order, which the SEC wants. As a result, Ripple must now provide post-complaint contracts, detailed financial statements for 2022–2023, and an answer to a question concerning the money received from institutional XRP sales following the filing of the lawsuit.

The defense team for Ripple argued that the court’s June 2021 decision had previously precluded the SEC’s request for post-complaint discovery, making it premature. Judge Netburn noted nonetheless that the prior refusal was relevant at the time, connected to expert merits discovery, and did not govern the case at hand.

Things Could Go Wrong for Ripple

The financial statements for Ripple for the years 2022 and 2023, which the SEC claims are necessary to choose the right action, have been ordered by the judge. The information regarding Ripple’s financial health has been considered potentially probative by the court, despite the company’s assertion that it is extremely secret and irrelevant.

Ripple’s post-complaint contracts were at issue as well; according to the SEC, these records may be vital in determining whether an injunction is required and warranted. To support the SEC’s argument, Judge Netburn has ordered the release of these contracts. This might potentially impact the issuance of an injunction by revealing whether or not Ripple’s post-complaint behavior has complied with court orders.