Recently, the SEC had filed a lawsuit against Ripple regarding their XRP token. Ripple then fired back by claiming that their token has never functioned as security before, and so the lawsuit is null and void. Ripple also recently filed their own lawsuit against YouTube for its complicity in fraudulent activities taking place on its social media platform. Just now, however, Ripple claims that the United States Securities and Exchange Commission desires to uncover their personal financial information. Needless to say, Ripple is furious about this, and the animosity between them and the SEC is reaching an all-time high.
Ripple CEO looking to block SEC from accessing their private and sensitive information
Brad Garlinghouse, Ripple’s CEO, along with Chris Larsen, are attempting to prevent the SEC from being able to access any and all sensitive information, most important of which is their personal finances. The SEC had not only recently demanded to review the bank records of multiple banks and other financial institutions, but they had also accused both Larsen and Garlinghouse of carrying out sales with unregistered XRP tokens.
Ripple’s representatives, however, would not back down as they claimed that the SEC is overextending its reach and influence, citing examples of their personal finances relating to food, groceries, and other non-relevant expenses as proof of this. They presented this information to the U.S. District Court for the Southern District of New York’s judge, Analisa Torres, and at the time of this writing, the SEC has since failed to present any viable reason as to why they should be granted access to Ripple’s personal financial records as it is deemed to be sensitive information.
SEC expects trouble as motions to dismiss are anticipated
Both Larsen and Garlinghouse have sent their own separate letters to Judge Analisa Torres in an effort to get her to dismiss the lawsuit filed against Ripple. The SEC, however, fired back at Ripple, saying that they had been warned about their token having security-like functionalities since 2012, and that is their own failure to change that has led them to this moment.
Nevertheless, we can only observe this situation for now and see how it escalates further. XRP investors are also hesitant to take action till this matter is fully resolved.