Investing.com – The cryptocurrency, home to XRP, barely fell on Saturday morning, despite a small victory by the U.S. Securities and Exchange Commission (SEC) in its legal battle with the payments network.
SEC gains access to internal and email communications from Ripple
Ripple was ordered to turn over internal documents as part of its ongoing legal battle with the U.S. Securities and Exchange Commission (SEC), news site Law360 recently reported.
According to the report, the company must provide the SEC with Slack employee chats and 22 different mailboxes.
Ripple has already submitted some documents to the Securities and Exchange Commission, but in August the payments network declined to release other communications, including those from Slack. The company said it would “probably take months and incur significant costs.” Collecting these documents could reportedly cost Ripple up to a million dollars.
US District Judge Sarah Nitburn, who is presiding over the case, said those costs had been offset by the previous two settlements. [de Ripple] Produce relevant messages from Slack and know how much money is available and at stake in the case.
It is not clear if Ripple will challenge the publication of communication records again, or even if it is possible.
Ripple recently filed a court petition asking the Securities and Exchange Commission to disclose XRP holdings held by its employees. This decision is made through ongoing litigation over whether or not Ripple should be classified as a security. If the claim that Saudi Electricity Company employees privately traded XRP in the course of their work is true, it would be a major conflict of interest. This could tip the issue in Ripple’s favor.
In December 2020, the SEC filed a lawsuit against Ripple because the blockchain company offered US investors XRP tokens that were allegedly unregistered securities. Ripple argues in its defense that XRP is not a security, but simply a currency.
It is not yet known when the final decision will be made. The disclosure deadline, originally set for August 31, has been extended to November 12. According to most experts, the case is likely to continue until 2022.
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