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Ripple won’t provide its financial records to the SEC

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Yet another win for Ripple after the court allowed XRP holders to submit a motion to step in the case.

The SEC had made a request to Judge Sarah Netburn seeking for Ripple executive’s financial data of the last eight years. According to a document filed on Friday, the Judge didn’t approve the SEC’s demand to examine Brad Garlinghouse and Chris Larsen’s financial records. 

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“The SEC shall withdraw its requests for production seeking the individual defendants’ personal financial records and withdraw its third-party subpoenas seeking the same,” wrote Netburn.

Back in March, the attorneys representing CEO Garlinghouse and Executive Chairman Larsen wrote a letter to the Southern District Court in New York on their behalf. In the letter, they asked Judge Sarah Netburn to deny the request made by the SEC.

“The SEC has not offered and cannot provide a coherent explanation for why it is entitled to this information.”

was written in the letter.

In the letter, it was also mentioned that subpoenas were consigned to six different banks: SVB Financial Group, Silver Lake Bank, the Federal Reserve Bank of New York, Silvergate Bank and Citibank NA, and First Republic Bank.

Chris Larsen Ripple
Ripple’s Executive Chairman, Chris Larsen

“The Individual Defendants’ privacy interests are especially powerful here because the requests and subpoenas seek such a comprehensive intrusion into their personal financial lives.”

the letter stated

Another important victory was achieved on April 6 when Judge Netburn granted Ripple Labs permission to inspect SEC’s internal discussions about cryptocurrencies.

Even though Ripple’s supporters are very optimistic about a positive outcome from the trial, Brad Garlinghouse declared that Ripple is prepared to continue without the XRP platform if they lose the legal battle.

“We could do that. We’ve always thought about our product as ‘How do we solve a customer’s problem first and foremost?”

Exchanges are currently discussing the possibility of relisting XRP in their platforms since SEC’s lawyers implied that only Ripple and Ripple’s affiliates may have sold XRP illegally. The company in fact declared that they have been talking to several exchanges and things are expected to change.

Ripple published last week a white paper that talks about the future of central bank digital currencies. According to this report, XRP, Ripple’s cryptocurrency, is a neutral bridge for CBDCs. (You can read the article here)

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