Ripple executives Bradley Garlinghouse & Christian Larsen have rejected demands by the United States SEC [Securities and Exchange Commission] to offer personal financial information as a part of the continued investigation into a possible Ripple sales securities violation.
Earlier on 11th March 11, lawyers for the Ripple Labs co-founders requested a protective order regarding their private data and involved the court to quash subpoenas issued to 6 of the defendants’ banks.
The banking institutions referred specifically were SVB Financial Group, First Republic Bank, the Federal Reserve Bank of New York, Silver Lake Bank, Silvergate Bank as well as Citibank.
Lawyers for Garlinghouse & Larsen argued that the SEC had overreached the right breadth of its investigations when it asserted that the defendants had intermingled their private finances with those of Ripple Labs. Thursday’s filing explained:
“The SEC’s multi-front plan to troll through the Individual Defendant’s personal financial information within a non-fraud litigation, where the Defendants have already agreed to offer the relevant data regarding the challenged transactions, might be a wholly inappropriate overreach.”
The “challenged transactions” in question relate to the unregistered sale of 14.6 Bln Ripple [XRP] starting from 2013 – a sum worth $1.38 Bln at the time of the complaint, now worth $6.5 Bln.
The legal team for Garlinghouse and Larsen explain their clients’ willingness to cooperate regarding financial records concerning the XRP sales, along with trading records, and documentation of compensation that both have received from Ripple.
“Specifically, the Individual Defendants have agreed to offer (a) trading records concerning the sales of XRP that the SEC is challenging within this case, and (b) financial records concerning the compensation that they actually received from Ripple,” stated the filing.
Financial records concerning unrelated business activities, and day-to-day spending accounts, consistent with the lawyers, aren’t pertinent to the case at hand. The filing explained as:
“As drafted, therefore, these requests demand everything from the proceeds of unrelated business activities to what proportion money they spend at the grocery every week.”