XRP Lawsuit: Here’s why Ripple is filing Motions but sealing the exhibits?

By Palak Malhotra
Published August 17, 2021 Updated August 17, 2021
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SEC vs. Ripple Lawsuit

XRP Lawsuit: Here’s why Ripple is filing Motions but sealing the exhibits?

By Palak Malhotra
Published August 17, 2021 Updated August 17, 2021

In the latest development in the ongoing XRP Lawsuit, the defendants’ counsel has filed an opposition against SEC’s former Motion to Compel. The SEC’s motion would legally require Ripple to collect and search a vast quantity of additional Slack communications from 22 custodians. However, the defendant’s opposition motion was again followed by a motion to seal exhibits, like its earlier Motion to Challenge SEC’s misuse of DPP.

The market is already rumored with speculations of a settlement since the defendants’ first motion to seal. But, according to Ripple’s plea to seal, the SEC’s stance to seal exhibits remains uncertain.

Ripple Opposition to SEC’s Motion to Compel

Ripple’s opposition to Slack Communications Motion to Compel by the SEC addresses the SEC’s unrealistic demands. The defendants highlighted the unreasonable money and time that would go into discovering additional Slack data demanded by the SEC. Furthermore, Ripple argued that the defendants have already produced relevant data, and any further discovery will be duplicative and repetitive.

“The SEC’s extraordinary demand calls for an extensive and costly fishing expedition that would likely take months to complete and come at very significant cost. The SEC’s disproportionate request is also unreasonably duplicative of Ripple’s extensive production of over one million pages of discovery, including emails, documents, text messages, and responsive Slack messages for 33 custodians.”, Ripple writes in the Opposition letter to SEC’s Motion to Compel.

Ripple offers a bargain

Defendant’s counsel asserts that the SEC has understated the former Slack data provided by defendants. So, they have offered the discovery of additional, context-specific Slack data. However, SEC has turned down Ripple’s bargain and is continuing with its Motion to Compel. The crypto firm expects the court to deny SEC’s motion and move further with Ripple’s offer.

“The reasonable offer of compromise that Ripple made to produce additional Slack messages from nine custodians that—unlike the SEC’s proposal—focuses on more significant custodians with high Slack usage levels”, Ripple added.

Ripple files another Motion to Seal

However, the twist in this lawsuit arises from Ripple’s repetitive Motions to seal exhibits. Followed by the defendants’ Opposition letter, the defendants filed another motion to seal exhibits. Ripple has back and again argued that the seal is to prevent the lawsuit from becoming a source of entertainment or amusement.

The defendants claimed that the named individuals in the documents should not be made liable to public presumption. Nevertheless, the settlement speculation only becomes stronger with Ripple’s constant defense of sealing exhibits.

“The exhibits attached to Ripple’s Opposition Letter are not judicial documents and are not entitled to the presumption of public access. There is no benefit to the public unsealing these documents at this stage of the proceedings and no prejudice to the SEC or to the public in these documents remaining sealed.”, wrote Ripple.

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The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
About Author
Palak Malhotra
411 Articles
Journalism & Mass Comm. ‘21 graduate, Palak is a GenZ journalist with background in Lifestyle journalism & PR. At CoinGape, Palak is a junior crypto journalist preparing for Web 3.0

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