SEC Accuses Ripple of “Harassment” For Trying to access Internal Records

April 23, 2021, 9:30 AM AEST (updated April 27, 2021)

On April 9, a judge granted Ripple executives access to various internal records from the Securities and Exchange Commission (SEC). The records contain information about XRP, Bitcoin, and Ethereum, where the SEC classifies these three assets as “cryptocurrencies.”

Now the SEC accuses Ripple of “harassment,” for gaining access to the documents, claiming the defendants are not seeking relevant evidence but to “derail the case’s focus away from its merits.”

SEC Asks Judge To Block Access to Documents

The SEC sent a letter to judge Sarah Netburn on April 21, requesting limited access to the records. Lawyer Jeremy Hogan found a document in which the SEC refers to XRP as a “digital currency” in 2016.

The court order requires the SEC to search between tens of thousands of external emails of at least 19 custodians for documents related to XRP, BTC, and ETH. However, the SEC claims:

It has become evident through the meet-and-confer process that Defendants are seeking to ignore the limitations of this Court’s Order and to mire the SEC in indefinite discovery disputes and, if successful, document review.

Gary Gensler, MIT professor and crypto advocate, was announced as the new SEC Chairman. Many in the XRP community speculate that Gensler could withdraw the lawsuit, which could give XRP a dramatic boost in price.

On April 19, the XRP community filed a motion to intervene in the case. The file, which contains a Memorandum of Law, emphasizes that many US government agencies recognize XRP as a currency, and developers, businesses, and holders had to halt their work due to the delisting of the currency across exchanges, causing further price decrease.

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