In the latest development in the XRP case, U.S. District Judge Annalisa Torres has handed a major victory to the Securities and Exchange Commission (SEC). Judge Annalisa Torres dealt a major blow to Ripple, forcing it to disclose sensitive financial information to the SEC. This unexpected development could pose major problems for the blockchain giant and could affect the fate of XRP itself.
Here's the inside scoop.
SEC gains ground
Judge Torres agreed with the SEC's motion and ordered Ripple to disclose its 2022-2023 financial statements and agreements related to “institutional sales” of XRP. The SEC argues that this information is essential to determining penalties and remedies in ongoing litigation.
The court dismissed the SEC's requests, even though Ripple opposed them as “untimely” and “unnecessary.” The judges emphasized the importance of data at the relief stage and argued that they would not deny access to readily available information.
The court's judgment states: “There is no basis to avoid that investigation by denying access to readily available information that could be evidence of a remedial step.” This represents a victory for the SEC and strengthens its position in the lawsuit.
Also read: Ripple hack causes XRP sell-off! 200 million tokens disappear in free fall market
Ripple's fate hangs in the balance
The court's firm stance represents a victory for the SEC, solidifying its position in the case and giving it more authority in the proceedings.
These disclosures are critical in shaping potential penalties against Ripple for alleged violations of Section 5 of the Securities Act of 1933. Despite the charges against the executives being dropped, the classification of XRP as a security remains unresolved.
Amid the legal battle, attorney John Deaton, who represents parent XRP holders, is proposing a settlement. Deaton has suggested that Ripple pay a fine of about $10 million.
The stakes are higher than ever!
The case has entered a critical stage after the SEC was granted access to Ripple's financial information. This result rippled through the Ripple and XRP tokens, whose value fell from an all-time high of $3.4 to just $0.41. The crypto community watches with bated breath as the legal drama unfolds.
Read more: Ripple is back: XRP ready to enter US market after 3-year hiatus
So, XRP fans, is this the end for Ripple? Or can it make a miraculous comeback?
