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Ripple Ordered to Disclose Financial Information Amid SEC Lawsuit

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Key Points:

  • Ripple ordered to disclose financial details and XRP sales following SEC request.
  • Judge ruled distribution of XRP tokens to organizations as “unlawful sale of securities.”
  • Ripple must submit 2022-2023 financial reports and XRP sales contracts.
  • Court approved SEC motion to compel Ripple’s compliance.
  • Ripple contested ruling, citing objections as “untimely” and “unnecessary.”
  • John Deaton proposed $10 million fine for Ripple.
  • Lawsuit’s outcome crucial for Ripple and XRP token, impacting market value.
  • XRP price declined from $3.40 to $0.41 in response to developments.

In response to a recent court order, Ripple faces the obligation to disclose further insights into the financial standing and transactions involving its native cryptocurrency, XRP.

This mandate follows a request from the U.S. Securities and Exchange Commission (SEC), with Judge Analiza Torres previously ruling that the dissemination of XRP tokens to organizations constituted an “unlawful sale of securities.” However, transactions involving XRP on exchanges and among retail traders were excluded from this classification.

Under the court order, Ripple is now required to furnish its financial reports spanning the years 2022-2023, alongside contracts pertaining to organizational sales of XRP. These disclosures aim to illuminate critical details such as revenue generated from token sales.

Ripple’s opposition to this ruling signals the onset of a legal confrontation.

In a significant development within the ongoing lawsuit, U.S. District Judge Annalisa Torres has granted approval to the SEC’s motion, compelling Ripple to furnish additional financial statements covering the period from 2022 to 2023, along with agreements concerning “institutional sales” of XRP.

The SEC contends that this supplementary financial data is indispensable in determining suitable penalties and compensatory measures.

Despite Ripple’s objections, deeming the SEC’s requests as “untimely” and “unnecessary,” the court emphasizes the importance of this information for the litigation process. Notably, John Deaton, representing Pro-XRP holders, has recommended a fine of approximately $10 million for Ripple.

As the SEC gains access to further financial insights from Ripple, the lawsuit enters a pivotal juncture, carrying significant implications for both Ripple and the XRP token. Consequently, the XRP price has witnessed a notable decline, plummeting from its recent high of $3.40 to $0.41.

Source: coinpedia

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