SEC requests Ripple’s financial statements as a value at trial
SEC requires Ripple to disclose its 2022 and 2023 financial statements and institutional sales contracts
The United States Securities and Exchange Commission (SEC) and Ripple Labs continue to face trial before Judge Sarah Netburn of the Southern District Court of New York. The SEC requires Ripple to disclose its 2022 and 2023 financial statements and its institutional sales contracts for XRP, the cryptocurrency the agency considers a security.
The SEC filed a lawsuit against Ripple in late 2020, accusing it of selling unregistered securities. In July 2021, Judge Analisa Torres ruled in favor of the SEC, finding that XRP’s sales met the Howey test and were securities sales.
Ripple objects to the SEC’s application, arguing that its financial statements and post-suit conduct are irrelevant to the case. Ripple also states that it does not intend to claim that it cannot pay fines.
The SEC insists that Ripple’s financial statements are relevant for calculating the amount of a deterrent fine and for assessing the feasibility of precautionary measures. The SEC argues that the Securities Act (presumably 1933) allows preventive action to be taken when a breach is about to occur.
K. Tovar
Source: Cointelegraph
(Reference image source: Kanchanara, Unsplash)
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