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Court Denies SEC’s Request to Disclose Ripple’s Garlinghouse's and Larsen’s Personal Financial Records

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Sat, 04/10/2021 - 09:43
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Yuri Molchan
The judge has denied request of the US securities watch dog to compel Ripple to disclose personal financial data of Ripple’s present and former chief executives
Court Denies SEC’s Request to Disclose Ripple’s Garlinghouse's and Larsen’s Personal Financial Records
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Magistrate Judge Sarah Netburn believes that the disclosure of personal financial records of Brad Garlinghouse and Christopher Larsen on SEC’s demand is irrelevant to the XRP case - this is stated in the court’s ruling shared on Twitter by the blockchain researcher and an XRP community member Leonidas Hadjiloizou.

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Court rejects the SEC’s request

The document issued by the court states:

“The SEC’s Requests for third-party subpoenas make broader requests, however, that would result in the disclosure of an immense trove of private financial information with no relevance to whether the Individual Defendants offered or sold XRP into the public market or promoted its sale to potential investors.”

“Insofar as the SEC seeks the personal financial records to verify that the records the Individual Defendants agreed to provide are complete, the Court finds no evidence to suggest that such a verification is necessary or appropriate.”

The Security and Exchange Commission of the US initiated the lawsuit against Ripple Labs and its two highest-profile executives – Larsen (former CEO and cofounder) and Garlinghouse (CEO) – accusing all the three of selling unregistered XRP securities to institutional investors since 2012-2013 when the company was founded and known as OpenCoin.

Since that time, Ripple and the aforementioned individuals have made over $1 billion in profits from their XRP sales.

Related
BREAKING: Ripple Scores First Legal Victory Against SEC as Judge Grants Its Motion to Compel Discovery

Ripple’s first legal victory over the SEC

As reported by U.Today previously, the court approved of the Ripple’s request to compel the SEC to produce the documentation that drove it to announce Bitcoin and Ethereum to be non-security assets.

The request to compel the SEC to do that was granted on April 6.

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About the author

Yuri is a crypto journalist interested in technology and technical innovations. He has been in crypto since 2017. Believes that blockchain and cryptocurrencies have a potential to transform the world in the future in many of its aspects. ‘Hodls’ major cryptocurrencies and has written for multiple crypto media outlets. 

His articles have been quoted by such crypto influencers as Tyler Winklevoss, John McAfee, CZ Binance, Max Keiser, etc.

Currently Yuri is a news writer at U.Today and can be contacted at yuri.molchan@u.today.