In the latest court case involving the SEC and cryptocurrency, a federal judge has ruled that Ripple, a company with most of its operations based in the US, must hand over 1,000,000 private messages from a group of employees to the SEC. In a decision dated March 26th, the judge ruled Ripple should comply with the SEC’s request for the electronic communications between Brian Krzanich, XRP CEO, and other employees. The SEC has been investigating the cryptocurrency industry since the agency first started looking into crypto back in 2014, and has recently moved to crack down on crypto companies.
In a decision that could have enormous implications for the future of cryptocurrencies, a US judge ruled that a startup called Ripple Labs will have to hand over 1 million messages exchanged between its employees between 2013 and 2015.
In a recent court case, a judge ruled that a large number of messages from the blockchain messaging app Slack had to be handed over to the SEC. The judge found that the messages contained evidence that the plaintiffs were coordinating their efforts to artificially drive up the price of XRP on the XRP Ledger platform. The judge also found that the plaintiffs had aided and abetted the defendants in a violation of the Securities Law. The SEC is still considering whether to appeal the judge’s ruling, and the Ripple team is considering their options as well.
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News from the Exchange
Ripple and its workers had a million lost Slack chats that needed to be recreated. The Securities and Exchange Commission (SEC) has asked Ripple to hand up the cryptocurrency.
Ripple agreed to disclose this data at the outset of the discovery process, but then changed its mind, according to the SEC. And he said that the exercise would be a lengthy and costly journey that would take up both time and money.
Producing these messages, according to Ripple, may cost up to $1 million. Judge Sarah Netburn, on the other hand, thought the messages were significant and unusual evidence. For the ongoing SEC case against a multimillion-dollar company that was selling unregistered securities.
Judge Netburn stated:
“Any hardship imposed on Ripple is overcome by its prior commitment to provide relevant Slack communications, the parties’ respective resources, and the amount in dispute.”
SEC vs. Ripple
When the SEC was compelled to release some documents, the court issued this order. The regulatory monitor was ordered by the court. Also, on the 31st of August, during the SEC Conference Call, to reveal internal documents related to discussions on the nature of XRP and ETH, for which an in-camera analysis will be conducted.
The legal battle between Ripple and the SEC started last year with the company and its former and present CEOs. Ripple Labs, co-founder Christian Larsen, and CEO Bradley Garlinghouse have also been sued by the Commission. The accused has been charged with selling unregistered securities by the Securities and Exchange Commission (SEC).
The SEC described Ripple’s refusal to disclose the whole communications as “highly prejudiced.” As a result, the watchdog concluded that the missing messages were very important.
Ripple argued that the creation of messages for up to $1 million over a period of months was unfair and excessive. Judge Netburn ruled that the cost of sending the messages to Ripple was excessive and irrelevant to the case.
On Wednesday, September 26, 2017, in a federal courtroom in New York, the US District Judge in the Southern District of New York ruled in favor of the SEC in its case against Ripple’s CEO, Chris Larsen, and the company’s CTO, Stefan Thomas. The two men are accused of running a fraudulent initial coin offering (ICO). If the case moves forward, the judge ordered that all of Ripple’s Slack messages are to be handed over to the SEC. A majority of the messages are expected to be in the form of “whisper” chat logs, which are made up of private messages that are only visible to the people they are sent to.. Read more about ripple lyrics and let us know what you think.
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