Remember the much-touted partial win the U.S. Securities and Exchange Commission (SEC) secured last year against Ripple (XRP)?
Looks like the SEC has gone a step further and secured another, although small, win in its court battle against Ripple.
On 2nd February, a U.S. district judge ruled that Ripple should submit all the necessary details about 2022-2023 financial statements to the SEC, post-complaint contracts governing institutional sales of XRP tokens, and the amount of proceeds received through the institutional sales of XRP tokens.
Flashback alert, it was back in 2020 when the SEC charged Ripple for allegedly offering unregistered security, XRP. The case went on for years before the court finally delivered a 50-50 ruling in July 2023.
The final judgement decreed that while the sale of XRP tokens to retail traders did not constitute the sale of unregistered securities, the institutional sale of the same XRP tokens violated Section 5 of the Securities Act.
Following the judgement, the SEC has been pursuing the court to ask Ripple to produce additional information so that appropriate penalties for the violations can be fixed. Ripple opposed the regulator’s motion, arguing that the company’s financial health is not relevant to the case.
However, the court has ruled in the SEC’s favour as it remarked that information readily available to Ripple should be made accessible to the other parties so that the case can be resolved.
Did you know? Ripple is among an array of crypto exchanges that is battling the SEC in the U.S. over the sale of cryptocurrencies being labelled as unregistered offering of securities.
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