In the recent XRP lawsuit update, the U.S. district judge’s ruling directed Ripple to disclose crucial financial information, marking a victory for the SEC in its lawsuit against the blockchain company.
Court Orders Disclosure
U.S. District Judge Analisa Torres has finally approved the SEC’s motion to compel Ripple to provide additional financial statements from 2022-2023 and contracts about “Institutional Sales” of XRP. In its motion, the SEC argued that this additional financial information is essential for determining appropriate penalties to be imposed on Ripple and remedies in the case.
Ripple had argued against the SEC’s request deeming them “untimely” and “unnecessary”, but the court disagreed, emphasizing the importance of this information for the remedy stage.
The court’s decision stating “no basis to short-circuit that inquiry by denying access to readily available information that may be probative to the remedy stage” represents a win for the SEC, reinforcing its position in the lawsuit.
Implications and Legal Proceedings
The requested disclosures will be crucial in shaping potential injunctions and civil penalties against Ripple if found liable for violating Section 5 of The Securities Act of 1933. Despite charges being dropped against executives, the core question of XRP’s classification as security remains unresolved.
Pro-XRP holders’ attorney John Deaton suggested a settlement involving Ripple paying around $10 million fine.
As the SEC is finally granted rights to gain access to additional financial information from Ripple, the lawsuit enters a critical phase. The outcome will have significant implications for Ripple and the XRP token, whose price has seen a significant drop from its all-time high of $3.4 to a drastic $0.41.
Qadir AK
Qadir Ak is the founder of Coinpedia. He has over a decade of experience writing about technology and has been covering the blockchain and cryptocurrency space since 2010. He has also interviewed a few prominent experts within the cryptocurrency space.
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