Ripple Vs. SEC: Sealed Remedies Reply Brief Filed, What To Expect Now

In
the
latest
from
the
XRP
lawsuit
between
Ripple
and
the
US
Securities
and
Exchange
Commission
(SEC),
the
agency
has
filed
its
remedies
reply
brief
under
seal,
signaling
a
significant
advance
in
the
case’s
remedies
phase.
This
stage
focuses
on
determining
the
potential
sanctions
that
the
fintech
company
might
face
if
the
SEC
is
successful
in
proving
its
allegations
that
Ripple
conducted
unauthorized
securities
transactions
involving
its
XRP
cryptocurrency.

Ripple
Vs.
SEC:
Detailed
Timeline
And
Upcoming
Events

James
K.
Filan,
a
former
defense
lawyer
closely
monitoring
the
case,

updated
the
XRP
community
via
X
(formerly
Twitter),
stating,
“The
SEC
has
filed,
under
seal,
its
remedies
reply
brief
&
supporting
exhibits.
These
documents
are
not
yet
public.
Public,
redacted
versions
will
be
filed
by
Wednesday,
May
8,
2024.
Other
sealing-related
filings
will
follow.”

This
filing
is
a
crucial
procedural
step
in
the
ongoing
litigation,
initiating
a
series
of
legal
maneuvers
centered
around
the
confidentiality
and
disclosure
of
sensitive
materials.
Following
yesterday’s
sealed
filing,
Ripple
and
the
SEC
will
meet
today,
May
7,
to
discuss
and
determine
the
necessary
redactions
to
the
reply
brief
and
related
documents,
involving
both
parties
and
any
third
parties.
This
session
aims
to
determine
what
information
remains
under
seal
and
what
will
be
made
accessible
to
the
public.

Tomorrow,
on
May
8,
the
SEC
is
scheduled
to
release
a
public,
redacted
version
of
the
reply
brief
along
with
any
supporting
exhibits
not
designated
as
Confidential
or
Highly
Confidential
under
the
current
Protective
Order.
This
release
will
only
include
those
provisional
redactions
requested
during
the
May
7
meet
and
confer.

Further
sealing
motions
are
planned
for
May
13,
where
all
involved
parties
and
third
parties
will
file
omnibus
letter-motions
to
seal
all
materials
related
to
the
remedies-related
briefing.
This
includes
briefs,
declarations,
and
supporting
exhibits,
followed
by
the
submission
of
proposed
redactions
to
these
materials.

On
May
20,
oppositions
to
the
May
13
sealing
motions
are
due.
The
process
stipulates
that
parties
are
also
required
to
file
public,
redacted
versions
of
all
documents
within
14
days
following
the
court’s
decisions
on
the
omnibus
sealing
motions.

Financial
Stakes
And
Ripple’s
Defense

The
stakes
are
notably
high,
with
the
SEC
seeking
fines
and
penalties
totaling
around
$2
billion.
Ripple’s
counter-proposal

suggests
a
maximum
penalty
of
just
$10
million.
The
fintech
firm
argues
against
the
SEC’s
proposed
injunction,
maintaining
that
it
has
instituted
significant
changes
to
avert
future
infractions.

Ripple’s
opposition
to
the
SEC’s
demand
for
disgorgement
is
based
on
the
claim
that
the
regulator
has
not
substantiated
that
Ripple’s
activities
caused
monetary
losses
to
institutional
investors.
Regarding
civil
penalties,
Ripple
calls
for
a
substantial
reduction,
arguing
that
the
SEC’s
demands
are
disproportionate
compared
to
penalties
imposed
in
similar
cases.

Currently,
a

critical
battle
is
unfolding
over
the
testimony
of
expert
witness
Andrea
Fox.
Ripple
disputes
the
SEC’s
characterization
of
Fox’s
expert
declaration.
Ripple’s
objection
suggests
that
the
SEC’s
categorization
of
the
testimony
is
flawed.

Jeremy
Hogan,
a
legal
expert
from
the
XRP
community,

commented
recently
on
the
matter
via
X,
saying,
“I
think
the
SEC
will
win
this
motion.”
He
noted
that,
based
on
past
case
outcomes,
the
court
is
likely
to
recognize
Fox
as
an
expert,
thus
permitting
Ripple
to
depose
her
rather
than
striking
her
testimony
from
the
record.

At
press
time,
XRP
traded
at
$0.53761.

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