US SEC seeks XRP sales contract in lawsuit against Ripple

10 months ago 79

Request for disclosure of financial statements etc.

On the 11th, the US Securities and Exchange Commission (SEC) filed new documents in the case against Ripple.

It requires Ripple to disclose its 2022-2023 financial statements and any institutional sales agreements issued since the filing of the SEC’s complaint.

As a background, in a district court ruling in July, Judge Torres ruled that XRP itself is not a security. He also argued that sales to individual investors on exchanges etc. do not have the nature of securities. On the other hand, sales to institutional investors are recognized as securities.

connection:Summary of the “Ripple lawsuit” filed by the US SEC (December 2020 to October 2023)

The SEC is likely to request records of sales for the amount that the court has approved as securities. The SEC explained the purpose of this complaint as follows:

Following Judge Torres’ finding of Ripple’s liability for violating Section 5 of the Securities Act, this limitation is intended to assist courts in determining whether to impose injunctions or civil penalties. requesting disclosure of evidence.

It also helps courts determine the amount of civil penalties.

Ripple’s actions since the SEC’s filing to date support the validity of future violations, and Ripple’s financial position and the total amount received from corporate sales are likely to determine the amount of civil penalties. It continues to be the basis for making decisions.

Ripple also submitted documents on the same day in response to the SEC’s complaint. It asked for a two-day extension of the deadline for the SEC to respond, ending on January 19th.

#XRPCommunity #SECGov v. #Ripple #XRP @Ripple has filed a Motion for Extension of Time requesting an additional 2 days, until January 19th, to respond to the @SECGov‘s Motion to Compel. pic.twitter.com/mAy7mPi4gw

— James K. Filan (@FilanLaw) January 11, 2024

connection: US Ripple to buy back more than 40 billion yen of stock

What is SEC (Securities and Exchange Commission)?

Established in 1934. The purpose is to ensure fair trade and protect investors, and prevents insider trading, corporate accounting fraud, market manipulation, etc. It also determines whether virtual currency falls under the category of securities.

Virtual currency glossary

Trial continues from 2020

In December 2020, the SEC sued Ripple for offering unregistered securities. The trial has been going on for over three years.

After the district court partially ruled in favor of Ripple in July, the SEC had requested an interlocutory appeal to deepen the discussion on whether sales to individual investors constitute investment contracts. , a judge rejected it in October.

The current court date is that a Remedies Briefing is scheduled for February 12th. The SEC will then submit a brief by March 13th. Ripple has until April 12th to file an objection.

connection: XRP temporarily surges 6%, US judge rejects SEC’s interim appeal Ripple trial