Ripple Wants World's Biggest Exchanges Assistance to Combat SEC

Kavya  |  Jun 5, 2021

Ripple is now enlisting assistance from 15 of the world's biggest exchanges that it says might be used to dismiss the SEC claims. 

Ripple Is Enlisting Assistance From World’s Biggest Exchanges

On May 3rd, the corporation filed a motion in a New York court, requesting the judge to allow it to contact Bitfinex, OKEx, and other exchanges for material relevant to the lawsuit.

In their application, CEO Brad Garlinghouse and Chairman Chris Larsen asked the court to issue letters of request to 15 exchanges in Europe and Asia. Bitstamp, Bithumb, Upbit, Huobi Global, Korbit, Upbit Singapore, Bitlish, Coinbene, AscendX (previously Bitmax), Bitrue Singapore, ZB Network Technology, BitMart, Bitforex, HitBTC, and iFinex are some of them (the parent company of Bitfinex and its sister company Tether.)

The two defendants revealed in an accompanying memorandum of law in support of the issuing of the letters of request that the transactions take place in a variety of jurisdictions, including the Cayman Islands, Seychelles, Malta, Hong Kong, the United Kingdom, and South Korea.

Why Documents In SEC Lawsuit Are Important?

Larsen and Garlinghouse further on why the required documents are important, stating:

The Individual Defendants seek foreign discovery based on their good faith belief that the listed entities possess unique documents and information concerning this case, specifically the process by which the Individual Defendants allegedly conducted transactions in XRP on foreign digital assets trading platforms.

The information obtained from the exchanges will help Ripple defend itself against the SEC's charge that the two executives sold more than 2 billion XRP to "public investors in the market." 

According to the SEC's updated complaint, the two sold XRP on global digital asset trading platforms. The SEC demanded that they disgorge the profits they received from these sales.

To conclude, Ripple is attempting to demonstrate that Garlinghouse and Larsen only exchanged their XRP on international exchanges. Such sales are outside the purview of the SEC. Ripple made the following observation:

For the reasons stated in the Individual Defendants' Motions to Dismiss, the SEC's failure to allege domestic offers and sales should be fatal to its claims.

This is the third argument raised by Ripple in its defense against SEC accusations. The first is that XRP is not, in fact, security. It then established the fair notice defense, which is the most important in its case. 

This is also the defense that, if successful, will demolish the entire SEC case. And it is now challenging the SEC's jurisdiction over the venues where the XRP transactions took place.

 

Related News