Ripple Labs has filed a new legal memorandum in an attempt to counter previous motions from the U.S. Securities and Exchange Commission in its ongoing lawsuit. In the memo Ripple claims that the SEC has misquoted its statements in earlier attempts to dismiss Ripple’s defense.
The memo is the latest development in the ongoing lawsuit that the SEC filed in December of 2020. The SEC accuses Ripple that its sales of XRP are considered offerings of unregistered securities and is thereby breaking the law.
Over the months that the case progressed, there has been a lot of firing going both ways. Ripple has argued that there was a lack of due process and fair notice from the SEC. They also requested a discovery of SEC documents. This was then countered by the SEC in April when it filed a motion to dismiss their arguments.
Now Ripple is claiming the SEC has made some severe errors leading to misquotes in court documentation.
First, Ripple was quoted by the SEC as stating that its request for communications “[had] great relevance …to [its] fair notice defense.” However, Ripple says that its full statement implies that the request was relevant whether its defense was successful or not.
The new memorandum attacks this and reads:
“The discovery is relevant “both” to the fair notice defense ‘and the same … applies to whether the individual defendants were reckless or had knowledge that XRP would be found to be a security.’ ”
Additionally, Ripple claims that the SEC misquoted a statement from the case’s judge. In its previous motion, the SEC claimed that the case’s judge said that discovery of internal communications “could conceivably be relevant to Ripple’s fair notice defense.”
Ripple believes that this is incorrect too; According to them, the judge only referenced that the SEC’s charges merely open the door to such a discovery.
While Ripple has celebrated many wins in the case so far, it is unsure whether Ripple’s claims will be effective. The SEC previously stated that to its awareness, “no federal court has accepted a defendant’s argument” around lack of notice.
The lawsuit is likely not coming to an end before the end of the year, considering the recent plays made by both parties.
Ripple is currently trading at $1.56 after 15% increase in 24 hours. Not far from its all-time high of $1.60 according to CoinMarketCap data.
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