Ripple decided to involve Binance in its lawsuit against the US Securities and Exchange Commission (SEC).
According to reports, the Garlinghouse legal team is requesting documents “relevant to this case that are not available in other ways” from Binance Holdings Limited, a subsidiary of a large crypto exchnage based in the Cayman Islands.
Involvement of Binance in a lawsuit with the SEC
The lawyers representing the CEO of Ripple claim, in essence, that the offers and sales disputed by the SEC did not take place in the United States and are therefore not subject to the law relied on by the SEC. Therefore, Binance is involved to prove this claim. The crypto exchange should be required to provide such evidence, as government institutions such as the State Department and central authorities are involved in the dispute.
“Mr. Garlinghouse is requesting documents based on his belief in good faith [Binance Holdings Limited] own unique documents and information relating to this case ”.
“As the SEC knows, the vast majority of its XRP’s sales were made on digital asset trading platforms outside the United States. […] the evidence Mr. Garlinghouse seeks will be relevant to proving that offers and sales have not taken place in that country and are therefore not subject to the laws invoked by the SEC in this case. “
The U.S. financial markets agency, the SEC, filed a lawsuit against Ripple last December 2020.
In addition to CEO Garlinghouse, former CEO Christian Larsen and the entire Ripple Labs Inc. are indicted. The allegation was that they issued XRP as unlisted securities worth $ 1.3 billion. In particular, Garlinghouse and Larsen are accused of making unregistered personal sales of XRP totaling approximately $ 600 million.
From a technical and legal point of view, according to the SEC, the defendants allegedly violated the registration provisions of the Securities Act of 1933.
Now, with Binance’s participation, Garlinghouse could prove that this law could not be enforced in this case and get rid of the accusations made directly against him once and for all.
At the same time, the price seems XRP has been trading at $ 0.75 since August 2021. While market capitalization, despite the decline due to the current situation of the company and also the entry of new, more innovative players into the crypt market, remains in sixth place. XRP still holds a 2.5% dominance in the crypt market with a market capitalization of $ 35 billion.