The SEC and Ripple have filed new motions relating to the remedies phase of their ongoing legal battle.
Both the SEC and Ripple have been quiet for over a month since a federal court issued the scheduled order for the remedies phase of their ongoing lawsuit.
The parties have remained silent for nearly two months, thus sparking concerns among XRP enthusiasts. Notably, the SEC and Ripple finally broke the silence as they filed new motions in the case.
SEC Moves to Compel Ripple to Produce Vital Documents
In a January 11 letter sent to Magistrate Sarah Netburn, the Securities and Exchange Commission asked the court to compel Ripple to hand over its audited financial statements from 2022 – 2023.
Additionally, the SEC also wants Ripple to produce its post-complaint contract governing institutional sales. The SEC emphasized that the post-complaint contract it seeks relates to the “institutional sales” transactions, which the court found to be securities in July 2023.
According to the SEC, these documents would help Judge Analisa Torres to “determine whether the court should impose a relief” like injunctions and civil penalties, having found Ripple liable for violating the United States securities law.
Ripple Files Motion Seeking Time Extension
Reacting, the popular crypto payments firm filed its own motion hours later, requesting an additional two business days to respond to the SEC’s motion to compel.
As revealed by seasoned lawyer James K. Filan, Ripple wants the court to extend the deadline for its response from January 17 to January 19.
#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
It remains to be seen whether the court will grant Ripple’s request for a time extension.
Remedies Phase of Ripple Vs. SEC
Yesterday’s filings marked the SEC’s and Ripple’s first official motions with respect to the remedies phase of the lawsuit.
The remedies aspect of the SEC v. Ripple lawsuit is currently in the discovery phase, which is expected to be completed on February 12, 2024.
In the latest motion, the SEC claimed that it served Ripple “three requests for production and nine interrogatories” relating to the remedies for institutional sales violations on November 14.
However, Ripple refused to produce any of the requested documents, prompting the regulator to officially file a motion to compel the company to hand over two narrow document requests and one interrogatory.
The documents relates to Ripple’s audited financial statement from 2022 to 2023 and the company’s post-complaint written contracts governing its XRP sales to institutional clients.
According to the SEC, the interrogatory request pertains to the amount of proceeds Ripple received from institutional sales since the complaint was filed.
