SEC vs. Ripple Update: SEC Opposes Ripple’s Motion of Concealing Financial Data

LUCKNOW (CoinChapter.com) — The U.S. Securities and Exchange Commission (SEC) has strongly opposed Ripple’s attempt to keep financial details about its XRP sales under wraps. In a recent filing, the SEC argued that Ripple has failed to overcome “the strong presumption” that court documents detailing its finances and business operations should be accessible to the public.

The agency stated that the financial figures, terms of contracts, and other details are fundamental to the requested remedies and the court’s determination of penalties.

Related Post: XRP SEC Battle! Judge Orders Ripple to Disclose Internal Financial Records

Ripple’s Request to Conceal Financial Information Deemed Unlawful

Ripple had earlier filed a motion to keep this information confidential. The firm cited potential harm to its business interests if the details were made public. The company’s Chief Financial Officer, Jonathan Bilich, provided a supporting declaration arguing for the sealing of “negotiated financial terms of its contractual agreements with certain third-party business partners.”

However, the SEC has firmly rejected Ripple’s arguments. The regulator stated that the company has failed to meet the standard required to keep such information from public scrutiny.

If the public cannot see how the remedies requested and ordered compare to Ripple’s actual financial information, general deterrence will be significantly undermined.

the SEC argued in its filing.

The regulator insists that while it does not challenge the sealing of Ripple’s recent financial statements as a whole, specific financial figures and terms of contracts used by the parties to calculate and justify remedy requests should be made public.

Crucially, the SEC wants Ripple to disclose:

• The amount of its current assets (relevant for determining penalty amounts)
• The amount of recent XRP sales (pertinent to injunctive relief and penalties)
• Ripple’s revenues and expenses (crucial for calculating potential disgorgement)
• The size of discounts offered to institutional investors (to assess investor harm)

The SEC contends that Ripple has not provided sufficient evidence to demonstrate that the disclosure of this information would result in substantial injury warranting confidentiality. Furthermore, the agency argues that much of the financial data and evidence in question is already stale and outdated, and some details are already publicly available.

The SEC had recently filed a remedies reply brief, doubling down on its arguments for imposing injunctions and penalties on Ripple for allegedly violating securities laws through the sale of XRP.

XRP Price Jumps, Whales Selling Holdings

Meanwhile, the price of XRP has experienced a notable surge. The token’s value has jumped by 5% in the past 24 hours and currently trading at $0.54. Additionally, its trading volume has increased by more than 150%, suggesting higher interest from traders and investors.

However, some large XRP holders (whales) have been selling portions of their holdings following SEC’s opposition to Ripple’s sealing motion. This could potentially indicate a belief among certain investors that the disclosure of Ripple’s financial details and XRP sales information may not bode well for the company’s position in the case.

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