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Ripple took another win against the lawsuit filed by the SEC

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  • Ripple won another war against the US SEC by preventing its CEOs financial reports from being public
  • According to the US SEC, they might get any evidence from the personal records of the individuals
  • The firm has continued to deny the claims charged by the SEC since it filed the lawsuit

Ripple, one of the significant fintech firms in the world, prevented its CEO’s financial records from being public. The United States Securities and Exchange Commission (SEC), had filed a lawsuit against the firm for raising $1.3 billion by selling its native crypto token, XRP. Indeed, according to the SEC, Ripple had used those crypto tokens as unregistered securities. However, the regulatory body requested Brad Garlinghouse and Chris Larsen to disclose their personal eight years of financial records last month.

Ripple denying the claims raised by the US SEC

Since the US SEC had lodged the lawsuit against Ripple in December 2020, the firm continues to deny the charges. Similar to all charges, the firm also fought with regulatory enforcement from disclosing the CEO’s financial records of the last eight years. Garlinghouse and Larsen called out the US SEC’s requests as an “overreach”. However, on Friday, the CEOs won another battle.

The US Magistrate Judge Sarah Netburn granted the firm’s motion and ruled to keep the financial records private. According to the judge, although financial records reflect bank deposits from cryptocurrency exchanges on specific dates, the documents cannot be publicized to show how the pair generated that fund. This means there are possibilities that the funds were generated via XRP sales, but there still is the possibility that the funds could be generated via other crypto sales and transfers of USD.

Why does the SEC want to publicize the reports of CEOs?

According to the US SEC’s belief, the Individual Defendant’s banking records might disclose little evidence of speculative transactions. Such transactions that the individuals are not disclosing in their XRP transaction records. And such transactions that are occurred and are not a foundation on which to order expansive discovery into personal financial accounts.

According to Jeremy Hogan, the judges have again clarified that technical/operational aspects of the Ripple (XRP) tokens are significant to the case. The same factor is what Ripple wants, but the US SEC wants it to be only about marketing and money.

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