The United States Securities and Exchange Commission (SEC) has now won a partial victory in a new episode of its lawsuit against Ripple Labs, the company responsible for the XRP token. The government agency won the proposal that required the company to disclose its financial statements.
According to a court document, Judge Sarah Netburn granted the SEC’s motion to order Ripple to disclose its financial information for the years 2022 and 2023, as well as undergo an interrogation Regarding institutional sales of the XRP asset.
Ripple Labs to also file post-lawsuit agreement on institutional sale of XRP Disclose Earned Income For those operations.
The SEC’s motion was granted in full by Judge Sarah Netburn on February 5, 2024, giving the regulator the ability to learn in detail about the state of the financial health of the company behind the XRP cryptocurrency.
Judge Netburn’s decision is a continuation of the litigation between the SEC and Ripple Labs, Which spanned more than three years. The ongoing controversy attempts to determine whether the XRP token is a security or a commodity.
As reported by CryptoNoticias, Judge Analisa Torres set to issue ruling in July 2023 XRP token issued by Ripple was a security when sold to institutional investors Already a venture capitalist; And so it was traded illegally because it was not registered.
Now, with the ruling, Judge Sarah Netburn moves in favor of the SEC and orders Ripple to show its audited financial statements. This is after considering Ripple’s objections regarding previous decisions, as well as privacy concerns There are not enough arguments To avoid financial disclosure.
Ripple Labs’ financial statements, contracts and other requested topics between 2022 and 2023 are relevant to the ongoing court case. This is because they will allow the US regulator to impose any sanctions against the cryptocurrency company.
However, the SEC argues that the proposal to learn about Ripple’s financial health is only to “address compliance and ensure a fair resolution of the matter through the mandatory exchange of relevant information.”
According to Judge Netburn’s court ruling, the information sought must be produced under a protective order Before next 12th February, This will happen only if the court directs appropriate sanctions.
The judge also agreed with the SEC that information about institutional sales of XRP following the complaint is relevant to determining “whether an injunction is necessary and fair.” And in that sense Ripple will also have to answer questions about the amount of institutional XRP sales revenue it receives.
As Cryptonews reports, the new ruling in favor of the SEC comes days after the regulator filed a motion before the Southern District Court of New York, in which it requested judicial intervention so that the company can provide its audited financial statements from 2021.