The drama between the SEC and Ripple escalate as the lawsuit regarding both of them turns to a new level, pushing XRP away from where it wants to be. Accusations and declines have been made by both parties, agreements seeming far between these two crypto authorities.
1: Ripple Refuses To Show Their Records Of Their Offshore Trading
The first drama scene is Ripple's decline to provide records of their offshore trading. A senior trial attorney at the SEC (Jorge Tenreiro) stated that the Ripple CEO (Brad Garlinghouse) nor the co-founder (Chris Larsen) gave any records detailing their accounts on foreign exchanges. This claim was done through a letter to Magistrate Judge Sarah Netburn, who has a significant role in the lawsuit between Ripple and the SEC.
The SEC accuses that Ripple has moved hundreds of millions of XRP into a minimum of a dozen foreign trading platforms outside the US domain, which converts to hundreds of millions of US dollars. The accusation is from a forensic analysis done by the SEC. The forensic analysis essentially means applying science to criminal and civil laws.
The SEC is chasing after Ripple as it attempts to acquire documents from 14 different cryptocurrency exchanges. Five of these exchanges use Ripple's On-Demand Liquidity (ODL) solution, meaning that XRP holders can easily switch from the XRP they have into their local currency in as little as three seconds. Although Ripple is fighting against the SEC's ability to check up on their foreign regulators, the SEC claims that the federal securities laws do not restrict them to do this when a civil action becomes filed against a party. These federal securities laws make the SEC free to investigate Ripple's foreign regulators. Ripple is in a lawsuit and so legally has no power to fight back against this act.
2: Ripple Accused Of Harassment By The SEC
The SEC accuses Ripple of harassment, asking the court to prevent Ripple from accessing its internal documents in fear of an escalating lawsuit by naming irrelevant SEC documents and quotes.
Ripple was allowed access to SEC documents on the 6th of April by Judge Sarah Netburn that talked about ideas and concepts the SEC had about Ethereum (ETH), Bitcoin (BTC), and XRP. XRP is being questioned by the SEC on its status as a digital currency.
Later this week, the SEC filed a complaint that Ripple's access to the mentioned documents become diminished to Judge Netburn. They claimed that Ripple aims to use these documents to distract the lawsuit into unnecessary areas on the SEC's comments and actions with assets on the digital world.
Resources
Event 2: https://dailyhodl.com/2021/04/24/sec-accusing-ripple-of-harassment-as-xrp-lawsuit-drama-escalates/
