Last year, the Securities and Exchange Commission of the United States charged Chris Larson and Brad Garlinghouse for trading illegal securities. Ripple Labs has since then remained in the court as defendants to navigate out of the legal troubles. As reported by James K. Filan, former federal prosecutor, Ripple Labs has recently filed an objection against further extension of the lawsuit.
SEC has recently requested an extension of two months for conducting interviews and collecting evidence for the case proceedings. However, the defense lawyers claim that such an extension could pose an existential threat for Ripple. The defense also argued that the reason for a 60-day extension is not clear, and therefore it would be a tremendous prejudice against the crypto enterprise.
SEC Wishes to Depose more Witnesses in the Ripple Labs Case
Ten relevant witnesses to the case have already been shortlisted and subpoenaed by the Securities and Exchange Commission. The prosecution team claims that it has decided to increase the number of depositions in light of the new evidence found during discovery. The scale of Ripple’s unlawful securities trading is extended on a massive canvas.
Two key witnesses that SEC wishes to interview are Ron Will, former CTO of Ripple Labs, and Ethan Beard, Senior Vice President of Xpring. The SEC also wishes to acquire the contents of the document from five additional custodians. Last year, the regulatory agency also claimed that Chris Giancarlo, former Chairperson at CFTC, was on Ripple’s payroll.
SEC Wants to Uncover the Lobbying Efforts of Ripple Labs
Last year, SEC wanted to compel Ripple to submit documents proving its lobbying crimes in the court of law. The prosecution team claims that Ripple is trying to hide behind the notion that it paid off several influential and key members of the government to support their litigation process. However, SEC has a right to conduct an in-depth investigation into the matter.
The firm further declared in the court that SEC lawyers want to confirm if the incentives are awarded under the pretext of fair notice. If SEC manages to obtain evidence in this regard, it will prove that Ripple actively participated in manipulating the fair market sentiment.