A New York judge has mandated that Ripple Labs comply with the U.S. Securities and Exchange Commission’s (SEC) request to disclose specific financial statements and information related to the institutional sale of XRP tokens. This directive, outlined in court filings on Monday, stems from an SEC request made in early January, subsequent to a pivotal judgment in a lawsuit against Ripple. The lawsuit alleges the crypto firm of selling unregistered securities in the United States.
Judge Analisa Torres, who previously ruled in July that only Ripple’s institutional sales of XRP violated U.S. law, is now seeking additional documentation to determine if the court should issue injunctions or civil penalties for violations occurring since the lawsuit’s initiation in 2020. The SEC, in its request, emphasized that the requested documents for 2022-2023 and contracts governing institutional sales post-lawsuit filing are crucial for this assessment.
Magistrate Judge Sarah Netburn signed the order on Monday, compelling Ripple to provide the specified financial statements and contractual details. Despite Ripple’s opposition to the SEC’s request on January 19, claiming it was untimely and lacked justification for each request, Netburn ruled in favor of the SEC, granting their request in full.
This development underscores the ongoing legal scrutiny faced by Ripple and the regulatory efforts to address issues surrounding the sale of digital assets, further shaping the evolving landscape of cryptocurrency regulation.
