Following Ripple’s first denial last month, the regulator has been successful in its demands.
The Securities and Exchange Commission of the United States could obtain access to Ripple’s internal Slack and email communications.
Ripple must relinquish documents
The SEC will require the business to give Slack and 22 other email custodians with employee communications.
Ripple declined to disclose Slack recordings and other conversations in August, despite originally providing certain papers to the SEC. It said that doing so would “likely take months to accomplish and come at a hefty price tag.” Ripple is rumored to be spending $10 million to gather those documents.
Judge Sarah Netburn, who is presiding over the case, noted that the fees are “outweighed by [Ripple’s] earlier commitment to disclose the relevant Slack messages,” as well as the amount of cash on hand and the amount at risk in the case.
It’s unclear whether Ripple will try to dispute the requests again or even whether that’s possible.
The SEC is still gathering data
The announcement comes just days after Ripple asked the SEC to divulge information about its XRP holdings and crypto trading procedures, a move that might help the crypto business win the lawsuit.
Last year, the Securities and Exchange Commission accused Ripple and its officials of conducting unregistered security offerings by selling XRP coins. These allegations were made in December 2020.
The case’s conclusion date has yet to be determined. The fact-finding phase of the investigation, which was supposed to finish on Aug. 31, has been prolonged. The lawsuit is expected to go until 2022, according to most predictions.