Magistrate Judge Sarah Netburn has found no need to disclose the personal financial statements of Brad Garlinghouse and Chris Larsen at the SEC's request as part of the regulator's lawsuit against Ripple.
In December 2020 the SEC accused Ripple of selling unregistered securities in the form of XRP tokens worth $1.3 billion. The defendants include the company's CEO Brad Garlinghouse and its co-founder Chris Larsen. The regulator placed emphasis on this in the amended complaint, filed in February.
The SEC requested six banks to provide data on the defendants' financial transactions over the last eight years. Ripple's lawyers asked the court to block the regulator's subpoenas. They noted that the company's executives had agreed to provide data on XRP transactions and payments from Ripple.
The judge supported the company's motion:
“Because the SEC is seeking personal financial reports to verify the completeness of the information the defendants agreed to provide, the court does not find evidence that such a review is necessary or appropriate.”
The court's order states that such requests would lead to disclosure of private information that “has no bearing on whether the defendants offered or sold XRP on the public market or aided its sale to potential investors.”
Earlier, Judge Netburn granted Ripple's motion regarding access to SEC documents revealing the regulator's “interpretation and views” of Bitcoin and Ethereum.
gov.uscourts.nysd.551082.103.0 by ForkLog on Scribd
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