Research on Ripple outside the US includes cryptocurrency trading platforms. Ripple demanded the SEC to stop requesting information about the firm internationally.
Ripple Labs Inc., the company that owns the cryptocurrency XRP is under the magnifying glass of The United States Securities and Exchange Commission. This time, the government entity is searching to gather data about the firm’s movements internationally.
The SEC revealed its intention in a letter consigned on Friday, April 23, to Sarah Netburn, a judge for the District of New York. The letter alleges that it requires knowing if the cryptocurrency company committed irregularities for the alleged collection of at least USD 1.3 billion since 2013 by selling XRP.
The SEC Seeks Ripple and XRP Information, and it Includes Trading Platforms
The SEC seeks Ripple and XRP information on 20 entities outside the United States of America, including trading platforms. The Commission highlights that information on overseas Ripple and XRP transactions are essential to the lawsuit. But of the nine foreign regulators the SEC has already asked for information, two have refused to cooperate.
In April 2021, Ripple demanded that the SEC stop requesting information about the firm and XRP abroad. However, SEC attorney Jorge Tenreiro noted that Ripple’s request is devoid of legal authority and considers its request to foreign regulators to be appropriate.
The SEC maintains a legal precedent for using requests for support during civil litigation because they are requests, not enforceable commands by federal courts. Therefore the Federal Rules of civil procedure can’t forbid those commands.
Sharing Information with the Opposing Party
The SEC has investigated the cryptocurrency addresses associated with both Ripple CEO Brad Garlinghouse and co-founder Chris Larsen. The entity argues that this investigation has revealed that millions of XRP have allegedly been transferred (directly or indirectly) to a dozen non-US cryptocurrency exchanges.
The SEC insists in the letter delivered to Judge Sarah Netburn that Ripple did not provide a single document relating to its digital asset accounts in the United States of America, nor has it explained in any other way the importance of these XRP transfers.
The Legal Battle between the SEC and Ripple Labs is reaching new levels
The lawsuit between the SEC and Ripple Labs INC has been going on since December 22, 2020. The legal action filed by the SEC even reached its co-founders, Christian Larsen and Bradley Garlinghouse.
They are accused of the alleged sale of XRP to support financial activities in the company. The SEC sees that asset to be an unregistered security. Ripple, for its part, argues that it is, in fact, a “virtual currency.”
Since then, a lot of conflict between the parts has happened. Among the most notable events that occurred is that the Binance and eToro platforms suspended XRP trading in the United States of America. This legal battle between the SEC and Ripple Labs, in recent weeks, has turned in favor of its cryptocurrency XRP because its price increased 14.23%.
By: Jenson Nuñez