Ripple responds to a factual mischaracterization made by the US SEC in a letter to Magistrate Judge Sarah Netburn.
In the most recent development in the litigation between Ripple Labs and the U.S. Securities and Exchange Commission (SEC) concerning the motion to compel remedies-related discovery, Ripple requests a sur-reply from the court to rectify the factual mischaracterization made by the securities regulator.
The action follows the SEC’s response that endorsed its motion to compel.
However, Ripple must provide the SEC with audited financial statements spanning two years, post-complaint contracts on the transfer or sale of XRP to “non-employee counterparties,” and comprehensive information regarding the “XRP Institutional Sales proceeds.”
Ripple Responds To SEC’s False Misstatements
As of late January 24 court filings, Ripple has instructed Magistrate Judge Sarah Netburn via letter to rectify factual misrepresentations in the SEC’s reply in support of its motion to compel.
Furthermore, the court would be able to adjudicate on an accurate record if the response clarifies the contested issues, according to Ripple. This would be of great benefit to the court.
Defendant Ripple Labs attorneys affix an exhibit to the SEC’s reply request, in which they assert that they hold differing opinions on a number of the arguments put forth in the reply.
Nonetheless, Ripple is doing so to rectify a material factual error committed by the SEC at this juncture.
Ripple refutes the SEC’s assertion that it “does not… argue that it would be burdened in producing” post-complaint contracts, which is false.
However, Ripple emphasized in its objection that the SEC’s request is “overly burdensome” and would necessitate an entirely new trial.
The SEC’s statement — Ripple “recently catalogued and presumably produced, in the ongoing class action suit, all of Ripple’s XRP sales contracts from 2020 to June 2023, including determining the identity of the counterparties to those contracts” is a misstatement.
In addition, Carolyn Dicharry’s declaration in Zakinov v. Ripple Labs is false.
Contracts are no longer produced by the corporation after December 22, 2020.
Regarding the post-complaint contracts that Ripple had disclosed in the Zakinov lawsuit, pro-XRP attorney Bill Morgan responded to the SEC’s severe factual mischaracterization. “No way. The SEC wouldn’t do that. Surely not?”
