The SEC has requested financial information that Ripple doesn’t want to give as the agency continues its enforcement action against it.
New York Southern District Court Judge Sarah Netburn has received the latest installment in the war of letters between Ripple Labs and the United States Securities and Exchange Commission (SEC). At issue are Ripple’s financials and institutional sales contracts, which the SEC wants to see in hopes that it will lend weight to its continuing enforcement action.
The SEC addressed a letter to Judge Netburn on Jan. 11 asking for an order to compel Ripple to produce its financial statements for 2022 and 2023 and Ripple’s contracts for institutional sales since the agency filed suit against it in late 2020. Judge Analisa Torres ruled in a summary judgment in July that institutional sales of XRP (XRP) meet the Howey test and constitute securities sales.
Ripple responded to the SEC request with a letter to Judge Netburn on Jan. 19 in which it argued that the discovery phase of the proceedings ended in August 2021 and its conduct since the filing of the suit was irrelevant to the case. Furthermore, its financial condition was also irrelevant since it did not intend to argue that it was unable to pay penalties.
