In the ongoing legal saga between Ripple Labs Inc. and the U.S. Securities and Exchange Commission, Ripple filed a response on January 19, opposing the SEC’s motion to compel. James K. Filan, former federal prosecutor and defense lawyer, updated the latest filing on Twitter, showing Ripple’s stance on the SEC.
Ripple’s Response to SEC Motion
In response to the SEC’s motion, Ripple’s legal team outlined two primary objections.
Firstly, Ripple argues that the SEC’s requests are untimely, emphasizing that the SEC had “ample opportunity” during fact discovery to seek the information it now demands. Ripple contends that reopening discovery at this stage is unfair and could unnecessarily prolong the legal proceedings.
Secondly, Ripple asserts that the SEC has failed to justify the relevance of the requested information to the court’s determination of remedies. The SEC’s demands include audited financial statements for 2022 and 2023, details of post-complaint contracts for XRP sales, and information on “XRP Institutional Sales proceeds” after the complaint filing. Ripple questions the necessity of this information, arguing that it does not impact the court’s decision on penalties.
Insights from James K. Filan and WrathofKahneman
Former federal prosecutor James K. Filan updated us by posting Ripple’s latest Court filing against the SEC. On the other hand, WrathofKahneman, known for providing valuable insights on Ripple’s legal battles, shared highlights from Ripple’s court filing on Twitter. According to him, Ripple’s objections emphasize the untimeliness of the SEC’s requests and the lack of merit in the demands.
Additionally, WrathofKahneman provided a detailed breakdown of Ripple’s arguments against the SEC’s motion. He underscored Ripple’s concerns about the SEC attempting to gather unnecessary information and potentially delaying the legal process. The thread delves into procedural issues, including the closure of fact discovery, potential unfairness, and the SEC exceeding allotted interrogatories.
Twitter users expressed varying sentiments regarding the unfolding legal drama. User Mark humorously envisioned a wrestling-style showdown between Ripple CEO Brad Garlinghouse and SEC Chair Gary Gensler, with Ripple emerging victorious. Others, like user Kyle, focused on the procedural aspect, highlighting Ripple’s attempt to prevent the SEC from obtaining what they deemed irrelevant information.
As the Ripple vs. SEC legal showdown continues, the latest response from Ripple reveals a strategic and firm opposition to the SEC’s compelling motion. The arguments presented by Ripple lay strict weight on procedural fairness and question the necessity of the SEC’s information requests.