SEC Gains Access to Ripple's Slack, Email Conversations
The regulator has succeeded in its demands after Ripple's initial refusal last month.
Key Takeaways
- The SEC has been granted access to Ripple's internal Slack messages and email correspondence.
- This outcome could cost Ripple as much as $1 million.
- The decision is part of the SEC's ongoing case against Ripple and its alleged unregistered XRP token sales.
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The U.S. Securities and Exchange Commission has succeeded in gaining access to Ripple’s internal Slack and email conversations.
Ripple Must Give Up Documents
Ripple has been ordered to hand over internal documents as part of its ongoing court case with the U.S. SEC, according to recent reports from the legal news site Law360.
The firm will need to provide the SEC with its employee conversations from Slack and 22 different email custodians.
Though Ripple initially provided some documents to the SEC, it also refused to deliver Slack records and some other communications in August. It argued that doing so would “likely take months to complete and come at very significant cost.” Supposedly, collecting those records could cost Ripple $10 million.
The judge presiding over the case, Judge Sarah Netburn, stated that these costs are “outweighed by [Ripple’s] previous agreement to produce the relevant Slack messages,” as well as the amount of funds it has at hand and the amount at stake in the case.
It is not clear whether Ripple will attempt to challenge the demands a second time, or if doing so is possible.
SEC Is Still Gathering Information
Today’s news comes just days after Ripple requested that the SEC reveal data about its XRP holdings and crypto trading policies, a move that could sway the case in the crypto company’s favor.
The SEC charged Ripple and its executives with operating an unregistered securities offering via the sale of XRP tokens last year. Those charges were put forward in December 2020.
An end date for the case is still not clear. The case’s fact discovery period, initially set to end on Aug. 31, has been extended. Most estimates suggest that the case will continue into 2022.
Disclaimer: At the time of writing this author held less than $75 of Bitcoin, Ethereum, and altcoins.
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