Today, the Securities and Exchange Commission (SEC) wins in its legal battle with Ripple. SEC wins access to Ripple's 1 million internal Slack messages as the U.S. Magistrate Judge Sarah Netburn has ordered Ripple to give the notes.
Based on the reports, SEC charged Ripple and 2 executives with conducting $1.3 Billion unregistered securities offering. As a result, Ripple has to provide 1 million missing Slack messages between employees. Even though it will cost up to $1 million, the judge deemed the records critical and unique data for the SEC’s ongoing case.
This comes after the SEC's lawsuit against the multi-billion dollar firm for conducting unregistered securities.
On August 9, the SEC alleged that the messages between Ripple employees were “relevant to the parties’ claims and defenses. And also, similar to the needs of the case.” According to Law360 reports, Ripple has to present all messages from 22 email custodians.
In addition, last month, SEC told Judge Netburn that the Slack messages, which Ripple gave, appeared to be incomplete. So the SEC said,
"These messages include: (a) discussions about Ripple's desire to create speculative trading in XRP, (b) the effect of Ripple announcements and efforts on, and Ripple's concerns as to, the price of XRP, the relationship and central importance of XRP sales to Ripple's overall business, and (d) the regulatory status of XRP."
Further, Ripple thinks it is unfair and unreasonable to deliver messages at up to $1M over several months. However, Judge Netburn responded that this was outrun by their attention to the case. Judge Netburn said,
“Any burden to Ripple is outweighed by its previous agreement to produce the relevant Slack messages, the relative resources of the parties, and the amount in controversy."
Last week, Ripple demanded SEC to reveal policies and data about its employees trading cryptocurrencies.