SEC Files Opposition To Ripple’s Latest Motion

Ripple SEC United States
Last updated:
Author
Author
Jimmy Aki
About Author

Jimmy has nearly 10 years of experience as a journalist and writer in the blockchain industry. He has worked with well-known publications such as Bitcoin Magazine, CCN, and Blockonomi, covering news...

Last updated:
Why Trust Cryptonews
Cryptonews has covered the cryptocurrency industry topics since 2017, aiming to provide informative insights to our readers. Our journalists and analysts have extensive experience in market analysis and blockchain technologies. We strive to maintain high editorial standards, focusing on factual accuracy and balanced reporting across all areas - from cryptocurrencies and blockchain projects to industry events, products, and technological developments. Our ongoing presence in the industry reflects our commitment to delivering relevant information in the evolving world of digital assets. Read more about Cryptonews

The US Securities and Exchange Commission (SEC) filed a response to Ripple’s motion application to seal and redact the company’s business details in the parties’ briefings on remedies on Tuesday.

The SEC argued that Ripple’s motion request to “conceal financial and securities sales information” from the public was unlawful, as the details in question were crucial to the requested remedies.

Ripple’s Opposition Tagged as “Unlawful” by SEC

In addition, the SEC contended that Ripple’s redaction requests would obscure public information crucial to the court’s decisions during the remedies phase and the public’s understanding of the penalties.

The details that the SEC wants the firm to make public include the value of Ripple’s current assets (relevant to the penalty amount), recent sales figures (pertinent to injunctive relief and penalties), revenues and expenses (related to disgorgement), and the size of discounts given to some institutional investors (reflecting investor harm).

The financial regulator further argues that Ripple has failed to provide reasonable evidence showing that the disclosure of publicly available information would result in substantial injury warranting protection. Additionally, the SEC notes that some financial details are outdated, and some evidence is publicly accessible.

“Ripple wants to hide the extent to which it offered XRP at discriminatory prices. However, the period when Ripple was offering discounts goes back to 2014 and ended in December 2020,” the US SEC filing explained. “Ripple has not shown how the discounts it offered four years ago and more would matter, particularly since Ripple seeks to avoid remedies by claiming it “has changed the way it sells XRP and changed its contracts.”

It’s worth noting that the SEC is not against keeping Ripple’s recent financial statements a secret. Neither is it opposed to the company’s request to seal the five exhibits in question in their entirety and several of its suggested redactions for remedy briefings.

It strongly opposes the company’s proposal to “redact information about its revenues and expenses” from 2014, however.

Deep Dive Into Ripple’s Motion and Potential Harm to Business Interests

It could be recalled that the legal dispute between the US SEC and Ripple began on December 22, 2020, when the financial regulator charged Ripple and several of its executives with unlawfully raising more than $1.3 billion through an unregistered securities offering via the sale of XRP.

The case has undergone several revisions over the years, culminating in its trial phase, which commenced on April 23, 2024.

The SEC is seeking over $2 billion in fines and penalties from Ripple. Ripple opposed the SEC’s demand, however, arguing that the civil penalty should not exceed $10 million.

Meanwhile, Ripple filed a motion on May 14, 2024, to seal or narrowly redact some of its documents concerning the SEC’s motion for judgment and remedies. Ripple argued that disclosing these non-public documents would cause “significant harm” to its business interests.

The company wants to seal or redact highly confidential information concerning its earnings, revenues, and expenses.

Ripple’s motion also noted plans to keep its contractual agreements with third-party business partners confidential. While Ripple acknowledges that offering discounts to institutional XRP buyers is relevant, it is unwilling to disclose the specific financial and pricing terms.

The SEC’s filed response believes that Ripple’s business details should be made public as it could shed more light on Ripple’s XRP sales and play an important role in the legal process. It should be noted that Ripple’s CTO, David Schwartz, recently disclosed the XRP sales strategy without stating the SEC’s pressure as the reason behind the sales.

More Articles

Blockchain News
Solana Bridge Volume Surges to All-Time High of Over $10 Billion
Jimmy Aki
Jimmy Aki
2025-02-14 17:21:01
Press Releases
Margex Latest Update: $TRUMP Token and Simplified Bonus System
Jose Aquino
Jose Aquino
2025-02-14 17:15:16
Crypto News in numbers
editors
Authors List + 66 More
2M+
Active Monthly Users Around the World
250+
Guides and Reviews Articles
8
Years on the Market
70
International Team Authors