At the request of the U.S. Securities and Exchange Commission (SEC), a New York judge has ordered Ripple Labs to provide specific financial accounts and details on the institutional sale of XRP tokens, according to court documents from Monday.
The early January request from the SEC comes after a significant ruling in the legal case where the cryptocurrency company is accused of selling unregistered securities in the nation. The cryptocurrency industry heralded Judge Analisa Torres’ July verdict, which found that only Ripple’s institutional sales of XRP violated U.S. law, as a success in its attempts to make clear how regulators approach digital assets.
The requested records will help Torres decide whether to award injunctions or civil fines for the period since then, and if warranted, how much, the SEC said in its request. Torres found Ripple accountable for violations prior to the lawsuit being filed in 2020.
Since the complaint was launched, Ripple has been required to turn up contracts governing institutional sales as well as financial accounts for 2022–2023, according to an order signed by Magistrate Judge Sarah Netburn on Monday. Netburn fully complied with the SEC’s request.
In a filing dated January 19, Ripple objected to the SEC’s request, claiming that it was premature and that the agency had “failed to justify each of its requests on the merits.”
“The SEC’s request for irrelevant and burdensome post-complaint discovery, especially given the close of fact discovery, should be denied,” Ripple’s attorney stated.