Judge orders Ripple to hand over financial documents after request from SEC

Quick Take

A judge granted an SEC motion to compel Ripple to produce 2022-2023 financial statements and contracts governing institutional sales of XRP.

A U.S. district judge has ordered Ripple to produce additional information about the company's financials and institutional sales of XRP, handing a win to the Securities and Exchange Commission.

The regulator sued Ripple more than three years ago over what it said were unregistered sales of XRP. Last year, Southern District Court of New York Judge Analisa Torres ruled that sales of XRP to institutional investors were unlawful securities sales, but "blind bid" sales to retail were not.

On Monday, the court granted the SEC's motion to compel Ripple to produce more information so the court can determine appropriate penalties. The company must provide 2022-2023 financial statements and contracts governing institutional sales of XRP; it must also answer questions regarding the amount of XRP institutional sales proceeds it received.

Ripple says financial health is irrelevant

In its opposition to the SEC’s motion, Ripple said the company’s financial health is irrelevant for the matter. The court, however, saw "no basis to short-circuit that inquiry by denying access to readily available information that may be probative to the remedy stage."

The judge also agreed with the SEC that information about the post-complaint institutional sales of XRP is relevant for determining "whether an injunction is necessary and just."

Ripple did not immediately respond to a request for comment from The Block.

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