Ripple Labs Financial Statements From 2022-2023 Are Requested To SEC Lawsuit

Key Points:

• Judge Netburn rules in favor of the SEC, compelling Ripple to disclose Ripple Labs financial statements and details of XRP institutional sales.
• Ripple must provide 2022–2023 financials and institutional sales contracts as requested by the SEC.
• Despite prior rulings, Ripple objects to the SEC’s move, emphasizing the case’s complexity as the legal struggle continues.

In a recent development, U.S. District Judge Sarah Netburn ruled in favor of the Securities and Exchange Commission (SEC), directing Ripple to provide additional information concerning the Ripple Labs financial statements and institutional sales of XRP.

Ripple Ordered to Reveal Ripple Labs Financial Statements and XRP Sales Details

The decision is part of an ongoing legal battle initiated by the SEC over allegations of unregistered XRP sales.

Last year, Judge Analisa Torres declared that institutional sales of XRP to investors were unauthorized securities activities, distinguishing them from retail blind bid sales. Despite this ruling, the SEC sought further details regarding Ripple Labs financial statements for 2022–2023 and contracts governing institutional XRP sales.

Judge Netburn approved the SEC’s motion to compel Ripple Labs to furnish the requested information, emphasizing the importance of assessing whether injunctions and civil penalties are warranted. Ripple, in response, objected to the SEC’s move, characterizing it as a strategic tactic.

Ripple Objects as SEC Gains Ground in Ongoing Battle

The SEC contends that access to Ripple Labs financial statements for 2022–2023 is crucial for evaluating the extent of potential penalties and determining if injunctions are necessary. While Ripple argued that its financial health is irrelevant to the case, the court upheld the SEC’s stance, emphasizing the need for readily available information during the legal proceedings.

As the legal battle between Ripple and the SEC unfolds, the court’s decision signals a step forward in scrutinizing the Ripple Labs financial statements and institutional sales of XRP, with implications for potential remedies and penalties.