The $1.3 billion lawsuit against Blockchain company Ripple filed by the United States Securities and Exchange Commission (SEC) takes a fresh turn as US judge Sarah Netburn has asked both the parties to hold “a telephonic discovery conference on Tuesday, April 6, 2021,” as part of a motion to compel filed by Ripple’s legal representatives.
Earlier this month, lawyers representing the Ripple executives Brad Garlinghouse and Chris Larsen had urged Judge Netburn to compel the SEC to present documents related to the regulator’s lawsuit against the blockchain firm.
The motion states that it was filed as a result of the SEC’s reluctance to produce the requested documents. Ripple’s lawyer alleges that the SEC failed to provide “a single document concerning bitcoin or ether–two virtual currencies that are closely analogous to XRP,” which justifies why the regulator doesn’t consider the top two assets security.
Furthermore, the motion also alleges that the SEC failed to produce documents that relate to XRP’s legal status. The lawyers are also seeking “any documents from ten of the nineteen custodians the defendants proposed.”
Following the Judge’s order, the Ripple community seems to be taking it on a positive note. The community believes the move would play out in the blockchain company’s favor. On Twitter user wrote:
“This would be a huge step, as finally the internal comms of the SEC News will be revealed. April 6 will be a day to look forward to. A lot of clarity might come out.”
While another user questioned: “Am I the only one getting the feeling that both Ripple and the SEC have a pretty good idea of how damning those documents will be? 8+ years of infinite numbers of positions, guidance, and advice spread by multiple parties with no coherent regulatory policy.”
The order also asks members of the public interested in listening to the conference to dial into a number that “will be circulated to the parties before the conference.”
Ripple Execs Stay Put
As previously reported by The Daily Chain, the SEC had sent subpoenas to six banks seeking eight years’ worth of information about Ripple co-founder Christian Larsen and Chief Executive Officer Bradley Garlinghouse, but the executives have asked the court to block access to their personal financial records.
However, Garlinghouse and Larsen have requested Judge Sarah Netburn to block the subpoenas. The execs add that requesting details about their personal finances is a breach of privacy, especially since there have been no allegations that their personal finances were mixed with the company’s funds.