Ripple just lost one of the battles with the SEC, although the war still rages on. US Trial Judge Sarah Netburn ordered the company to comply with the SEC’s request and produce more than a million missing Slack messages that were sent among company workers. According to the SEC, Ripple has complied with previous requests to provide messages from Slack, albeit only partially. It was estimated that a large part of the data was still missing.
But the SEC found that even the data provided was very useful to get an idea of what was happening within the company.
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Ripple, of course, protested, claiming that complying with the request would incur huge expenses, around $ 1 million, but the judge decided that the messages would further clarify the situation and potentially provide new evidence in the ongoing case.
In addition to the messages, Ripple is also expected to deliver all messages from 22 email custodians.
Ripple forced to provide Slack messages regardless of cost
Ripple justified the fact that it produced only part of the messages in the past by saying that it was the result of a data processing error. Now, their reluctance to comply indicates that the company may have had other reasons as well, which the SEC did not fail to note. In fact, the regulator said it was a “very damaging” measure.
So far, the messages obtained by the SEC included discussions about the company’s desire to create speculative operations in XRP, the effect that Ripple’s announcements had on the price of XRP, the importance of XPP sales to the business of the XRP. company and, finally, the regulation of the currency. state.
The judge argued that any charge to Ripple, including the costs of $ 1 million to produce the messages, is outweighed by the company’s prior agreement to produce the messages, the amount of controversy regarding the case itself, as well as the controversy regarding its failure. to produce all messages.
For its part, Ripple also made a move against the SEC recently, requesting that the regulator provide information on the cryptocurrency holdings of SEC employees and the rules on which currencies can be held.
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