SEC Seeks Help from Foreign Regulators in Lawsuit Against Ripple

The SEC has requested the court deny a recent motion from Ripple Labs to stop the agency from contacting foreign regulators for discovery purposes.

April 26, 2021 | AtoZ Markets – Foreign regulators have rejected requests from the US Securities and Exchange Commission (SEC) about Ripple’s operations. The agency sent appeals after the company refused to provide documents on the transfers of XRP tokens abroad, Decrypt is reporting.

The SEC analyzed wallet addresses associated with Ripple CEO Brad Garlinghouse and co-founder Chris Larsen. The Commission found that hundreds of millions of XRP tokens were transferred to the accounts of unregistered US crypto exchanges.

The SEC approached nine foreign regulators with a request for documents from 14 trading floors and five companies. Two departments refused to help the American authorities, three refused to disclose the details of the discussion. The others rejected the request.

Read also: XRP Advocate Petitions Gary Gensler to Drop SEC Ripple Lawsuit

On April 23, SEC spokesman Jorge Tenreir asked Judge Sarah Netburn to refuse the defendants’ request to withdraw requests to foreign regulators.

“There is no reason to impede the development of complete factual documentation. The defendants’ request must be rejected,” the document says.

In December 2020, the SEC accused Ripple of selling unregistered securities in the form of an XRP token in the amount of $1.3 billion. Garlinghouse and Larsen were also defendants in the case. The regulator focused on their actions in a modified version of the lawsuit filed in February.

On April 7, Netburn granted Ripple’s petition for access to SEC documents revealing the regulator’s “interpretation and views” of Bitcoin and Ethereum. Against this background, the XRP price reached $1.8.

Recall that on April 11, 2021, the court rejected the SEC’s request to disclose the personal financial statements of the company’s top managers.

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