SEC Escalates Ripple Legal Battle, Demands Financial Documents

<p>In
a recent filing on January 11, the US Securities and Exchange Commission
(SEC) has intensified its legal pursuit against Ripple Labs, Inc., seeking to
compel the blockchain company to provide crucial financial documents. The SEC's
move is part of the ongoing legal case, which originated in December 2020 when
the regulatory body alleged that Ripple's sales of XRP constituted unregistered
securities offerings.</p><p>Regulator
Seeks 2022-2023 Financial Statements</p><p>The
SEC's latest filing specifically requests a court order that mandates Ripple to
produce its financial statements for the years 2022 and 2023. Additionally, the
regulatory body seeks documents related to contracts governing institutional
sales of XRP after the SEC's original complaint. Notably, the SEC argues that
Judge Analisa Torres had previously identified institutional sales as
unregistered securities sales during the pre-complaint period.</p><p>Furthermore,
the SEC is pushing for Ripple to answer a formal written question, known as an
interrogatory, regarding the amount of proceeds received from institutional
sales after the SEC's complaint. This applies to contracts entered into before
the complaint was filed.</p><p>The
SEC contends that these documents and the interrogatory are crucial for Judge
Torres to make informed decisions on potential relief, including injunctions
and civil penalties. The regulatory body asserts that the financial information
requested is fundamental for tailoring a penalty that would effectively deter
future violations.</p><blockquote><p lang="en" dir="ltr">