Main navigation

Ripple Executives Refuse to Provide Their Offshore Trading Records

News
Sun, 04/25/2021 - 07:13
article image
Alex Dovbnya
The SEC says that its requests sent to foreign regulators are important in the Ripple case
Ripple Executives Refuse to Provide Their Offshore Trading Records
Cover image via stock.adobe.com
Read U.TODAY on
Google News

Jorge Tenreiro, a senior trial attorney at the U.S. Securities and Exchange Commission, claims that neither Ripple CEO Brad Garlinghouse nor co-founder Chris Larsen has provided any documents related to their accounts on foreign exchanges in a letter to Magistrate Judge Sarah Netburn.

Tenreiro stresses that the defendants are refusing to turn over these records despite placing “significant weight” on the fact that they were trading outside the U.S. in their motions to dismiss.

Based on its forensic analysis, the SEC alleges that Larsen and Garlinghouse have transferred hundreds of millions of XRP tokens to at least a dozen foreign trading platforms apart from U.S.-domiciled ones.

Related
SEC Files Motion to Strike Ripple’s Key Defense

Going after foreign exchanges and Ripple’s partners     

As reported by U.Today, the SEC has sent a slew of Memorandum of Understanding (MOU) requests to foreign regulators.   

The SEC is trying to obtain documents from 14 cryptocurrency exchanges, five companies that use Ripple’s On-Demand Liquidity (ODL) solution, and an investor who bought XRP directly from the distributed ledger company.

Countering Ripple’s arguments, the agency claims that the federal securities laws do not restrict its ability to send requests to foreign regulators:

Nor do the federal securities laws restrict the SEC’s ability to send Requests to foreign regulators once the SEC files a civil action against any particular party. The statute does not distinguish between Requests sent during a civil enforcement action for purposes of obtaining evidence in a continuing investigation and those transmitted for purposes of the litigation.     

Three foreign regulators have prohibited disclosing their communications with the SEC while two of them have refused to provide any assistance.
           
The regulator states that Ripple’s request to turn over these privileged communications is “improper.”

article image
About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets, can be contacted at alex.dovbnya@u.today.