XRP Lawsuit: Ripple requests extension after SEC’s emergency motion

By Sunil Sharma
Published August 10, 2021 Updated August 10, 2021
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SEC vs. Ripple Lawsuit

XRP Lawsuit: Ripple requests extension after SEC’s emergency motion

By Sunil Sharma
Published August 10, 2021 Updated August 10, 2021

In the latest development in the XRP lawsuit, Ripple has sent a letter to judge Netburn requesting an extension of two additional working days, i.e., till Monday, August 16, 2021, to respond to the SEC’s emergency motion about the Slack communications discovery dispute.

Ripple Fails to produce Slack data

The SEC has written to Judge Netburn, requesting to revisit its claims against Slack conversations of Ripple employees. Upon approval, Ripple will be bound to produce the pending data from Slack, a messaging application used for crypto company’s internal communications according to the Securities and Exchange Commission. SEC stated that the defendants had earlier agreed to comply and provide the required data, however, as the date of discovery came closer, Ripple unceremoniously pulled back, refusing to provide Slack data, because of a “data processing mistake”.

Additionally, SEC pointed out the defendent’s early failure to produce the majority of Slack data including conversations of the individual respondent, Garlinghouse, along with messages among all designated custodians of the company, weighing into SEC’s suspicion.

Slack data’s Relevance

Nevertheless, the SEC has attested a list of 11 Ripple witnesses using incomplete records of their communications. The agency argued that Ripple’s Slack conversations hold “Highly Relevant Communications”, and the respondent should be compelled to search and produce responsive messages from 22 out of 33 of its email custodians.

SEC also claimed that the defendants already have knowledge of the sensitive information Slack data posses against it in the case and is therefore avoiding going through with discovering the messages.

“The messages produced show Ripple employees (including custodians whose Slack messages Ripple refuses to search) discussing issues directly relevant to disputes at the heart of this case. These messages include: (a) discussions about Ripple’s desire to create speculative trading in XRP, see Ex. I (Compilation Exhibit with highlights of relevant portions added by the SEC) at 2-6; (b) the effect of Ripple announcements and efforts on, and Ripple’s concerns as to, the price of XRP, id. at 8-24; (c) the relationship and central importance of XRP sales to Ripple’s overall business, id. at 26-37; and (d) the regulatory status of XRP, id. at 39-40.”, SEC stated in the letter.

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