Live Chat

Crypto News

Cryptocurrency News 9 months ago
ENTRESRUARPTDEFRZHHIIT

SEC Seeks Court's Aid to Summon Ripple's Financial Records Amid Enforcement Action

Algoine News
Summary:
The U.S. Securities and Exchange Commission (SEC) is urging a federal court to order Ripple to produce financial records and "Institutional Sales" contracts. This request is touted as a crucial step to aid in determining penalties for Ripple's alleged violation of the Securities Act of 1933. Initially, in December 2020, Ripple, along with its CEO and Chair, were indicted for alleged illegal fundraising via unregistered securities. Despite the SEC's move to drop charges against the individual executives, it's maintaining the pursuit against Ripple. Ripple's trial with the SEC is slated for April.
A motion placing demands on Ripple to provide specific documents associated with its enforcement action has been submitted to a federal court by United States Securities and Exchange Commission (SEC) attorneys. The SEC, in a document filed on January 11 in the U.S. District Court of New York's Southern District, sought Judge Sarah Netburn's approval of an order compelling Ripple to make known its 2022 to 2023 financial statements and "Institutional Sales" contracts formed after the complaint. The institutional sales contract information is linked to a July 2023 verdict where the XRP token was only considered a security upon being sold to institutional investors, as stated by a judge. The SEC is seeking this narrowly focused and critical discovery to assist Judge Torres in determining if, after deeming Ripple guilty of infracting Section 5 of the Securities Act of 1933, the court should enforce penalties such as injunctions and civil fines, and if so, in what amount, according to the document. Notice: Courtlistener Further Info: Predictions of crypto landscape changes in 2024 by Ripple's executive In December 2020, the SEC initiated a lawsuit against Ripple, its CEO Brad Garlinghouse and Executive Chair, Chris Larsen, accusing them of illegally raising funds via unregistered securities. In October 2023, the Commission signified its intention to relinquish the case against Garlinghouse and Larsen, but pledged to maintain its engagement with the crypto firm. Ripple's litigation with the SEC is set to commence in April. The Commission has levelled enforcement actions against other prominent US exchanges, including Binance and Coinbase. Ripple's Chief Legal Officer, Stuart Alderoty, has sharply critiqued the SEC for its definitive stance on crypto, labeling it an "unchecked regulator". Article: Crypto attorney Irina Heaver's take on death threats and lawsuit forecasts: Hall of Fame.

Published At

1/12/2024 12:18:24 AM

Disclaimer: Algoine does not endorse any content or product on this page. Readers should conduct their own research before taking any actions related to the asset, company, or any information in this article and assume full responsibility for their decisions. This article should not be considered as investment advice. Our news is prepared with AI support.

Do you suspect this content may be misleading, incomplete, or inappropriate in any way, requiring modification or removal? We appreciate your report.

Report

Fill up form below please

๐Ÿš€ Algoine is in Public Beta! ๐ŸŒ We're working hard to perfect the platform, but please note that unforeseen glitches may arise during the testing stages. Your understanding and patience are appreciated. Explore at your own risk, and thank you for being part of our journey to redefine the Algo-Trading! ๐Ÿ’ก #AlgoineBetaLaunch