The Securities and Exchange Commission (SEC) has prevailed in its legal battle with the blockchain payments company regarding access to Ripple Labs Inc.’s financial statement.
Judge Sarah Netburn of the Magistrate Court has granted assent to a move made by the SEC earlier in January for the cryptocurrency payment company Ripple to provide its financial statements for the years 2022 and 2023.
In addition, the regulators asked for responses to inquiries on the amount of cash received by the company from the institutional sales of XRP as well as post-complaint contracts governing such sales.
Remarkably, despite Judge Analisa Torres’ decision on XRP, Ripple and the SEC have been engaged in a protracted legal struggle that is still ongoing.
The regulator has requested access to Ripple’s 2022–2023 financial statement in a U.S. court filing. This was covered in the case as well, which was started in December 2020.
The top cryptocurrency player’s financial accounts are related to the Institutional Sales following the complaint, according to the regulator. Contrary to Judge Torres’ first ruling, the SEC believes that these records are essential to assisting Judge Torres in making decisions about XRP.
The financial document helps assess whether Ripple should be subject to injunctions and in figuring out the extent of any potential civil penalties, the SEC further explained.
Notably, Ripple believed that the regulator was using this request as a tactic to obtain the upper hand in the legal battle. Because of this, Ripple promptly objected to the SEC’s request for access to its financial activities.
Also Read: Ripple Challenges SEC For Ultimate Financial Request
