The Securities and Exchange Commission (SEC) lawsuit against Ripple Labs and executives Brad Garlinghouse and Chris Larsen appear to have taken a strange turn. According to former federal prosecutor and attorney James Filan, the Commission reportedly could have circumvented certain rules in its favor.
#XRPCommunity #XRP #SEC v. #Ripple @sentosumosaba BREAKING: DISCOVERY DISPUTE OVER #SEC CONTACTING FOREIGN REGULATORS AND SEEKING DISCOVERY OUTSIDE THE RULES OF THE FEDERAL PROCEDURE AND THE HAGUE TREATY. LETTER MOVEMENT ATTACHED. Https://t.co/53ytaZCjTi
– James K. Filan (@FilanLaw) April 16, 2021
The SEC is apparently “seeking discovery” from the United Kingdom’s Financial Conduct Authority (FCA) about Ripple. This method is called Memoranda of Understanding (“MOU”) and, according to a document file with the Southern District of New York and Magistrate Judge Sarah Netburn, violates the Hague Convention.
The document was introduced by the legal representation of Ripple Labs and claims that the SEC has at least 11 MOU demanding documents from “overseas entities.” The document claims that “many” of these entities are the payment company’s business partners “and about 10 international regulators.
The defense qualifies the trial as “inappropriate” and as part of an “intimidation tactic” to allegedly diminish Ripple’s ability to do business outside of the US.
Not only is the use of pre-litigation investigative tools to the disadvantage of defendants and the recipients of such requests, as described below, it also prevents this Court from exercising its legitimate discretion as to the scope of permitted foreign discoveries.
Behind the back of the judge, the SEC has violated US Civil Court rules by issuing multiple “MOUs” to require foreign governments to obtain files from @Ripple‘s foreign business partners. They got caught.
Read the full letter to Judge Netburn here 👇https: //t.co/9P7wIMfTr8
– CryptoLaw (@CryptoLawUS) April 16, 2021
SEC “Unfair” Advantage in XRP Case?
Commenting on the discovery, attorney Jeremy Hogan said the SEC is exerting indirect “regulatory pressure” on Ripple and its partners. Since the Commission is the only party that can apply this tactic Hogan said
This is NOT something a “typical” plaintiff could do and it is not fair, so Ripple shouts “dirty-poker” (…). (former prosecutor), this is a typical prosecutor who puts pressure not only on you, but also on your business friends.
Jesse Hynes, General Counsel for Gala Games, also gave his opinion, claiming it was an “insane” move by the regulator. Hynes stressed the importance and implications this lawsuit could have for the crypto industry as well said
Shame about the SEC! On the other hand, the SEC actually admits that this is an issue of great political and global significance. I can’t wait for that Judgment Summary motion with a doctrine argument with important questions.
XRP is trading at $ 1.64 with a correction of 8.9% after an impressive rally in recent days. On the weekly and monthly chart, XRP stands at 55.9% and 255.2% gain.