SEC Seeks Personal Bank Statements of Ripple Executives

The US SEC wants Ripple executives to provide personal bank statements as part of the ongoing investigation into a possible XRP sales securities violation.

March 12, 2021 | AtoZ Markets – The US Securities and Exchange Commission (SEC) wants bank statements from Ripple executives. Bloomberg writes about this with reference to the head of the company Brad Garlinghouse.

It is reported that the regulator intends to apply to six banks with the requirement to provide account statements of Brad Garlinghouse and the former head of Ripple Christian Larsen.

Thus, the SEC intends to get acquainted with all the cash flows of both over the past eight years. However, it remains unknown in which banks the SEC wants to receive statements.

Larsen and Garlinghouse have already asked the court to deny the exchange regulator such a request. In their opinion, the SEC request is a “completely inappropriate inflection” in a claim that is not fraudulent.

SEC is looking for a way to put the squeeze on Ripple

Ripple executives argue that the regulator did not indicate in the lawsuit any connection between their personal finances and the fintech company’s finances. At the same time, according to both, the Commission intends to gain access to absolutely all payment transactions.

“The SEC has not provided and cannot provide a clear explanation of why it is entitled to receive this information,” said lawyers for Ripple’s executives.

What’s more, Larsen and Garlinghouse claim to have already agreed to provide records that relate to XRP transactions. However, the SEC made it clear that this is not enough.

Earlier, AtoZ Markets reported of the intention Garlinghouse to file a motion to dismiss the charges regulator because of abuse of power. According to the head of Ripple, the editing of the initial charges indicates that the SEC does not understand the essence of their claims.

Recall that the SEC filed a lawsuit against Ripple in mid-December last year. Then the company and its management were accused of selling unregistered securities under the guise of XRP tokens.

Related: Ripple Executives Manipulated XRP Price, SEC Alleges

According to the regulator, Ripple has illegally sold XRP tokens worth $1.38 billion since 2013 without following the official registration procedure.

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