Court Orders Ripple to Disclose Financial Documents to SEC

A US District Judge has granted the SEC‘s motion to compel Ripple to provide information on its financial performance and institutional sales of XRP, as reported by The Block.

In December 2020, the Commission filed a lawsuit against the company, accusing it of selling unregistered securities in the form of XRP, amounting to approximately $1.3 billion.

Ripple’s CEO Brad Garlinghouse and co-founder Chris Larsen were also named as defendants.

In July 2023, Judge Analisa Torres ruled in favor of the California-based company, stating that programmatic sales and other distributions of the token did not constitute an offer and sale of investment contracts.

However, the ruling indicated that sales of the coins to major industry players violated US securities laws.

Following this, the Commission filed an interlocutory appeal, which the judge dismissed.

In October, the SEC dropped charges against Garlinghouse and Larsen.

The case regarding Ripple’s institutional sales of XRP continues.

The court has ordered Ripple to provide additional financial information to determine the potential penalties. The company must disclose its financial statements and contracts for 2022-2023 related to token sales to institutions and respond to inquiries about the corresponding revenues.

During the hearings, Ripple representatives argued that the firm’s financial status was irrelevant to the issues at hand. The court found no issue with disclosing “readily accessible data.” The court also agreed with the SEC’s argument that the requested information is crucial for reaching a fair decision.

Earlier, attorney Jeremy Hogan suggested that the case against Ripple might not conclude until 2027.