SEC Wins Financial Data Access Against Ripple in Ongoing XRP Lawsuit

The Securities and Exchange Commission has bagged a win against Ripple Labs this week, gaining access to confidential corporate information as both sides prepare for the remedies phase of their landmark cryptocurrency case.

Key lawsuit updates:

• The judge orders Ripple to provide financial statements and post-suit XRP contracts.
• SEC also wins data on institutional token sale proceeds since initial filing.
• Agency says info relevant to shape possible injunctions, penalties next.
• Ripple claimed requests were irrelevant, with charges dropped against executives.
• The years-long case remains ongoing, with the remedy phase looming.

According to court documents, Judge Sarah Netburn sided with the SEC in requesting various disclosures from Ripple. The requested materials the regulator will now access include Ripple’s current financials and post-complaint customer contracts.

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“At this stage, the Court sees no basis to short-circuit that inquiry by denying access to readily available information that may be probative to the remedy stage,” Netburn stated.

Judge Asks Ripple to Produce Post-Complaint Contracts

The judge affirmed that the SEC can obtain details on institutional XRP sales revenue Ripple has realized since the agency initially launched its lawsuit against the blockchain firm in late 2020.

The SEC has contended that the additional business information will help inform remedies against Ripple. This could potentially include injunctions or civil money penalties.

Ripple attempted to keep off what it called “untimely” and irrelevant requests now that charges over its XRP token have been dismissed against executives Brad Garlinghouse and Chris Larsen. However, it failed to persuade the court ahead of a looming February discovery deadline.

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While ending individual charges removed the prospect of a trial, the core question of whether Ripple’s XRP dealings constituted an illegal securities offering remains partially unresolved. Judge Analisa Torres previously determined only institutional sales met that criteria.

With new payment data and financial records in hand, the agency seemingly pushes toward a stronger negotiating position as final decisions are still pending around Ripple’s ongoing lawsuit.