The SEC that it may seek additional discovery if Ripple decides to assert additional defenses
In recent developments to the ongoing securities fraud dispute between the U.S. Securities and Exchange Commission (SEC) and Ripple, the court rejected the agency’s request to reconsider censoring documents under privilege relating to Hinman’s famous speech in June 2018, where he said ethereum could not be classified as a security. This ruling was considered a “huge win” for Ripple by a respected defense lawyer in the XRP community.
In another development, The SEC said it needed more time and informed Judge Sarah Netburn that it intends to challenge the court’s recent deliberative process privilege (DPP) ruling.
Ripple and SEC lawsuit: Fight for Hinman emails continues
Reportedly, the agency has said that it intends to elevate the new privileged endorsements in its recent letter. Accordingly, on January 13, the court ruled that the SEC must generate emails related to a controversial speech about Ethereum by former high-ranking official William Hinman. He claimed that the cryptocurrency was The second biggest is not security.
The plaintiff subsequently filed a motion for reconsideration, which the court denied earlier this week, which some have called a significant victory for Ripple. This judgment has angered the SEC. According to the agency, the defendants are prepared to proceed with summary judgments without a definite verdict.
At this time, the SEC has no plans to make any additional conclusions in the Ripple matter. At the same time, the letter indicates that both the plaintiff and the individual defendants have the right to request further information about future grievance remedies.
Ripple’s lawyers also advised the SEC that the defendants maintain the right to raise any other suitable defenses. Any such defense that the SEC considers to be damaging may be subject to a finding by the SEC.
In December 2020, the SEC filed a lawsuit against Ripple and its senior executives, charging that the defendants improperly raised more than $1.3 billion through an unregistered security asset. The plaintiffs are seeking redress for ill-gotten wealth.
Chris Larsen, a co-founder of Ripple, claimed in his motion to dismiss the action that the SEC’s efforts to penalize civil currency and civil money must be rejected if there is a deadline. The court denied the moderator’s effort to bring a lawsuit in early March. The court argued that each specific transaction “constituted a separate violation of the statute.” CEO Brad Garlinghouse’s motion to dismiss the lawsuit was dismissed as well.
Read more:
- Ripple Is Celebrating A New Order From US Magistrate Judge Sarah Netburn Amid Lawsuit Ongoing
- Judge Strikes Down The SEC Request To Withhold Certain Internal Email Conversations From Ripple Case