The judge forced Ripple to provide the Securities and Exchange Commission (SEC) with access to the one million missing messages from the Slack communication platform requested by the plaintiff.
The judge ruled in favor of the SEC over the lack of communication on Slack
Recall that on August 9, the SEC filed a motion to order Ripple Labs to submit reports, arguing that was key to the case. Also asked Ripple to make all messages from her 22 email administrators available. As a result, the judge ruled in their favor, despite repeated protests from Ripple.
Defendants claim that the cost of complying with the regulation alone will cost the company up to $ 1 million. Judge Sarah Netburn replied that the reports were crucial in this case.
She further replied that the importance of the reports in this case far outweighed the costs that their production would cost the company.
SEC vs. Ripple
SEC filed a lawsuit against Ripple Labs Inc. on December 20. and to two top managers. Co-founder Christian Larsen and current CEO Bradley Garlinghouse have reportedly raised over $ 1.3 billion by offering unlisted securities in the form of digital assets to investors.
In addition, the company reportedly distributed billions of XRPs in exchange for non-cash consideration. Larsen and Garlinghouse have also been charged with personal unregistered sales of up XRP for $ 600 million.
As the case unfolded, both sides suffered wins and losses. The SEC recently filed a proposal for full disclosure of the communication. When the permit was granted, it gave them a legal right to look at Slack reports from Ripple employees. However, during the presentation, the SEC claimed that Ripple had provided incomplete communication. After the initial rejection, Ripple said it was a data processing error and therefore more than one million messages were missing.
The SEC claimed that the removal of the relevant information was an attempt to cripple the case, as other reports received indicated that the rest would be very relevant. In its statement, the SEC stated:
“These reports include: a discussion of Ripple’s desire to create speculative XRP trading, a discussion of the effect of Ripple’s announcement on the price of XRP, the relationship and importance of selling XRP to Ripple’s overall business, and the regulatory status of XRP. “