By: Isha Das
In an update on the long-standing case between the U.S. Securities and Exchange Commission (SEC) and Ripple, a U.S. judge has ruled in favor of the SEC. Ripple has been ordered to produce financial statements, respond to an interrogatory, and hand over specific contracts.
Though the case between SEC and Ripple had generally concluded, the SEC requested additional information on Jan. 11 as a part of determining penalties and remedies. U.S. Magistrate Judge Sarah Netburn agreed with SEC on all fronts. Ripple is henceforth obliged to provide financial statements for 2022 and 2023, post-complaint contracts concerning institutional sales, and an answer for an interrogatory regarding post-complaint XRP sales.
The SEC lodged charges against Ripple in December 2020. By 2023, some victories had been claimed by both sides. Judge Analisa Torres ruled institutional XRP sales as unregistered securities offerings but maintained Ripple's programmatic XRP sales, including on retail exchanges, weren't securities offerings. Despite these rulings, Ripple's obligations for penalties concerning institutional sales are yet to be finalized.
While the latest court order doesn't alter previous rulings, it puts the SEC in a stronger position to argue for penalties and remedies. The SEC is purportedly aiming for a $770 million fine against Ripple, although some believe the actual fine may be lowered.
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