Yerevan (CoinChapter.com) – The US Securities and Exchange Commission (SEC) is grasping at straws to win the lawsuit it filed against Ripple labs back in Dec 2020.
The law enforcement agency accused the San Francisco blockchain startup of cheating the US public by selling $1.3 billion of its native XRP token as unregistered securities. It later amended its initial stance, claiming that Ripple cheated “public investors across the world.”
However, Ripple refused to back down. The company on Wednesday filed a motion wherein it requested foreign third parties (offshore exchanges: iFinex, Noah Trade, BGH One, Bitlish, BMXDM Technology, and others) to assess XRP’s status with assistance from local regulatory authorities of Singapore, South Korea, Cayman Islands, Hong Kong, United Kingdom, Malta, and Seychelles.
When SEC filed the said lawsuit, they deemed XRP securities. However, Ripple lost no time in accusing the agency of extreme bias. They pushed the notion that the SEC has no grounds to single out XRP from all the digital coins.
Magistrate Judge Sarah Netburn granted Ripple access to the SEC’s internal documentation concerning cryptocurrencies. Should those documents reveal Bitcoin or Ethereum mentioned as ‘currencies,’ the agency expects to have a tough time continuing the prosecution.
Sensing a weakening in the prosecution, the agency requested an extension on both fact and expert discovery by 60 more days.
Defense lawyer James K. Filan tweeted about this request. In the comment section, he stated, that a governmental agency requesting such an extension is unorthodox, given the extended period of the investigation (2.5 years) before filing the lawsuit.
#XRPCommunity#SEC_NEWS v. #Ripple#XRP After a 2 1/2 year investigation, and almost 6 months after filing the complaint, the SEC has just requested that the Court extend the deadlines for both fact and expert discovery by sixty (60) days.https://t.co/CVOAXqOWBm
As formulated in the request: “Defendants do not consent to SEC’s request, because they contend that SEC had sufficient time to investigate this matter before filing suit.”
However, the agency disagrees, stating that “Ripple suffers no cognizable prejudice from a 60-day discovery extension”. Judge Netburn has yet to grant or deny the request.
Prior To The Latest Motion
The SEC prosecutors recently filed a motion to gain access to Ripple’s internal documentation. The document contains legal advice that the startup received on whether or not the initial XRP offering was compliant with US investment laws. Magistrate Judge denied the motion, giving Ripple a significant win.
Legal commentator Clive Brabin asserted the importance of the ruling.
Judge Netburn’s ruling here could well be the key moment throughout this whole action. It’s a very important point and one which now places a great deal of emphasis on the fair notice defense, which could yet make or break this whole case.
— said the commentator.
The “fair notice defense” in the citing above concerns the fact, that despite the lengthy investigation that the SEC conducted, they never issued a warning before filing the lawsuit. The commentator also stated that the law enforcement agency has “hit a brick wall” when it comes to obtaining Ripple’s internal documents.
Meanwhile XRP…
… traded at $1.06 in the European session Thursday, approaching its 20-day exponential moving average (EMA-20: blue wave). The token gained 3 percent in the last 24 hours.
The $1.03 margin has proven significant in the past two months, both as resistance and support. If XRP manages to maintain the current bullish bias, it might use the margin for additional support to get back up above the EMA-20. Should Ripple have more wins in the courtroom, XRP could continue its ascend.
After the lawsuit was initially filed, Ripple saw a long line of see-saw wins and losses. However, the latest development seems to have turned tables in the company’s favor. The final outcome of the lawsuit is not yet clear. However, Judge Netburn’s final ruling will help clarify the laws involving cryptocurrencies either way.
Lilit is a Yerevan-based Markets writer, skilled in 3 languages, and interested in writing about the tech world, trading, art, and science. She also has a background in psychology and marketing, which helps deliver the right message to the target audience.
Launch of Australia's first Bitcoin ETF got delayed due to an unidentified broker, while Grayscale renewed its attempts for...
Our Partners
We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept”, you consent to the use of ALL the cookies.
This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary cookies are absolutely essential for the website to function properly. These cookies ensure basic functionalities and security features of the website, anonymously.
Cookie
Duration
Description
cookielawinfo-checbox-analytics
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".
cookielawinfo-checbox-functional
11 months
The cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".
cookielawinfo-checbox-others
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.
cookielawinfo-checkbox-necessary
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".
cookielawinfo-checkbox-performance
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".
viewed_cookie_policy
11 months
The cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data.
Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.
Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.
Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.
Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.