The lawsuit between Ripple and the SEC (Securities and Exchange Commission) now involves Binance (the leading crypto exchange) in the case. Brad Garlinghouse, the CEO of Ripple, stated that Binance carries the relevant documents regarding the lawsuit.
In the latest filing with the New York’s Southern District, the legal group of the Garlinghouse has requested Binance on behalf of the CEO to provide the documents containing the information concerning the process through which Garlinghouse utilized XRP (the cryptocurrency which is ranking at 6th number) to make transactions to the foreign exchanges. As accused by the AC (amended complaint) by SEC, Garlinghouse traded up to 357M XRP, which counts to nearly $257,348,709, to the market’s common investors, and those funds were traded to the investors through the platforms regarding the digital assets across the globe.
The SEC demanded the disgorgement related to the sales that Mr. Garlinghouse made, including those sales that were made on the trading platforms of digital assets, which were based outside the U.S. However, this remark of the amended complaint has been challenged by the legal team of Garlinghouse by mentioning that the accusation of SEC is essentially applied to the securities offers and sales, which are domestic according to section 5 of 1933’s Securities Act.
The team expressed that the records of the transactions made on the platforms of the foreign exchanges regarding XRP’s sales and offers exist in the data of the relevant platforms, and they lie outside the U.S. It further pronounced that the failure of SEC in accusing the domestic sales and offers would necessarily be disastrous to its assertions about the transactions of Mr. Garlinghouse. It further probed, the proof that the sales and offers by Mr. Garlinghouse did not happen within the country will justify that the SEC’s invoked law does not apply to this lawsuit.
The filing by the team of Garlinghouse further included their explanation which noted that the platform, which SEC has mentioned, is situated outside the U.S., through which Mr. Garlinghouse made his XRP transactions. The evidence which would be obtained by the respective platform of digital assets would be decisive in determining whether the issue relates to “irrevocable liability” being incurred outside the United States. The response of Garlinghouse is also included in the filing as a result of the accusation leveled by SEC against him and Chris Larsen (the co-founder of Ripple).