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Ripple Ally v. SEC: Here's Latest Update After Win on Secondary Market Sales

Tue, 02/07/2023 - 10:58
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Tomiwabold Olajide
Judge clarified ruling does not apply to secondary sales
Ripple Ally v. SEC: Here's Latest Update After Win on Secondary Market Sales
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The LBRY-SEC case is still ongoing. Referring to the conversations that took place at the most recent status conference on Feb. 6, the presiding judge, Paul J. Barbadoro, has issued an order setting up more discovery regarding the SEC's proposed remedies.

The remaining discovery in the case will be phased and expedited, per the order. LBRY is required to deliver the electronic files supporting its profit and loss statement and balance sheet that it submitted with its motion to limit the SEC's remedies within 14 days of the ruling.

The parties will meet and confer to attempt to agree on a series of specific, narrow interrogatories and document requests that address the issues raised during the status conference within 14 days of the SEC receiving LBRY papers.

The injunction did not, however, mention the particular issues. The SEC will then give LBRY 30 days to reply to written requests.

The parties must meet and confer within 14 days of LBRY's answer to the SEC's written requests if the SEC determines depositions are required. After the parties meet and attempt to reach an agreement, the depositions must be completed within 30 days.

Then, the SEC must provide a supplemental brief addressing the issue of remedy within 14 days of the conclusion of discovery.

Following the SEC's filing, LBRY will have 14 days to submit a brief in response. The court will then deliberate on the case before deciding on a final verdict.

Judge clarifies ruling does not apply to secondary sales

At the Jan. 30 hearing, CryptoLaw founder John Deaton, who made an appearance at the court, revealed that the judge made it crystal clear that his ruling did not apply to secondary sales of LBC.

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Ripple Ally's LBC Token Jumps 140% Following This Minor Win in Hearing

According to Deaton, the judge stated that he would make it very clear that his order does not include secondary sales. He then forced the SEC to agree that they were not pushing for that.

LBRY lost in summary judgment to the SEC, as the judge ruled that the initial sales of LBC tokens constituted a securities offering.

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About the author

Tomiwabold is a cryptocurrency analyst and an experienced technical analyst. He pays close attention to cryptocurrency research, conducting comprehensive price analysis and exchanging predictions of estimated market trends. Tomiwabold earned his degree at the University of Lagos.