Tuesday, April 13, 2021

SEC files to stop a motion by Ripple executives to deny it access to their financial records.

The Takeaway:

The Securities and Exchange Commission has moved in court to stop Ripple executives' motion to deny it access to their personal financial records.

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The legal battle between the U.S. SEC and San Francisco-based blockchain payments firm Ripple Labs has continued to heat up. In the latest turn of the events, the SEC has moved in court to stop Ripple executives’ motion to deny it access to their personal financial records. The SEC had issued subpoenas to six banks that current and former CEOs, Brad Garlinghouse and Chris Larsen, have been using since 2013.

 

Ripple has failed to prove why the SEC shouldn’t access the records, SEC claims. 

Ripple Labs has failed to prove why the SEC shouldn’t access the records, the financial watchdog argues. It stated in its motion, “The party resisting discovery must show why the requests are not proper and cannot do so with general and conclusory objections as to relevance, overbreadth, or burden.” The watchdog further outlined the two reasons it needs access to the two executives’ financial records. First, it views these records as critical to the claims and defenses in the lawsuit. 

 

“The defendants can’t show the SEC’s request is improper.”

“Bank records are the simplest and most reliable way to deanonymize Individual Defendants’ XRP transactions: they must eventually convert XRP into fiat currency that appears on their bank records because XRP is not legal tender and is not universally accepted for goods and services,” the SEC stated in its rebuttal. Second, the defendants can’t show the SEC’s request is improper. The Ripple execs cited the California state’s privacy rights in their defense. However, the SEC claims that they failed to show that this right is “a valid basis to quash a federal subpoena, and for a good reason: that is not the law in federal court.”

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Disclaimer: The article reflects the opinions of the author and is not representative of Chaintimes’ views.
The article does not offer any investment advice. User discretion is advised when investing in or trading with cryptocurrency. Extensive and diligent research should be carried out by the reader before making a decision.

Jai Pratap
Jai Pratap
A Mass Media Graduate who loves to write. Jai is also a sports enthusiast and a big movie buff. He loves to learn new things.

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