Netburn refutes the SEC request for the financial statement of the firm’s top executives. She said it is irrelevant to the allegations. The firm, again, has won another score over SEC, following the previous request to peep into SEC’s document, which judges Netburn granted.
Ripple and SEC have been in a power tussle for quite some months now with no end in view. In the accusations against Ripple, SEC gave out subpoenas to 6 separate financial institutions. The court order contains a request for financial data, in the past eight years, of Garlinghouse and Christian Larsen, Ripple’s CEO and Chairman, respectively. SEC alleges that Ripple made a sale profit of $600 million via illegal sales of XRP as securities.
SEC Sent 6 Separate Financial Institutions Subpoenas
Responding, Ripple scribed a letter to the overseeing judge to scrap the subpoenas. The defendant’s legislature person further wrote that it is an inappropriate step to seek sensitive private financial records. They also claimed that the data SEC asked for is only relevant when it is a fraud case. And since there was no complaint reporting the two individuals of fraudulent activity, the data SEC seeks does not correlate with the case.
Although Ripple condemns the request, SEC still focused on getting the private banking records of the two top executives who oversaw XRP transactions for years. In a different epistle, the SEC advocate stated that for an adequate investigation to be carried out over the sales of XRP, the agency needs all the data it could get, including the two defendants’ bank details. He concluded that with the bank records’ aid, the agency might be armed with additional facts to bolster their charges against Ripple and its two top executives.
The Ruling Favours Cryptocurrency Firm
Although SEC’s rigorous tried to convince the court to grant its motion of accessing bank records of the firm’s defendants, unfortunately, it proved abortive. It argued that the request was appropriate in assessing the XRP trades alongside the revenue generated via the illegal sales of XRP. However, the overseeing judge, Sarah Netburn, debated that there was no correlation between the data requested and the lawsuit.
In opposition to SEC’s move, a request refuting the orders was filed by Ripple with the presiding court of law. In this motion, Ripple stated that the SEC’s move was wholistically irrelevant because the crypto firm had earlier consented to provide SEC with all data relevant to its XRP exchanges.
Eventually, the judge yielded to Ripple’s request. Netburn announced from a court file that getting the private bank details of the accused is uncalled for. The judge scribed that SEC’s appeal and issuance of the court order to third-party would consequently leak a massive volume of personal financial details, which would not help determine if the accused sold XRP in the open market offered it to impending investors. The judgement ordered SEC to stop its strive from getting the data.