The US Securities and Exchange Commission (SEC) claimed that XRP was a security in a securities lawsuit filed in December last year. In this context, Ripple managers are also accused of selling unlicensed securities. Both sides are struggling seriously in the case. Here are the developments in the last phone conference.
Today, the SEC claimed in the relevant case that the securities status of XRP was known. Jorge Tenreiro, a senior attorney with the US Securities and Exchanges Commission, argued in a telephone conference with judge Sarah Netburn that Ripple’s lawyers told the company that XRP could be a currency and a security:
“They were sophisticated actors and for this purpose they hired at least 12 law firms. Ripple’s so-called confusion should be tested against what is actually said. ”
As it turns out, the SEC is trying to force Ripple to release legal advice from lawyers regarding the situation of XRP. However, Tenreiro claimed that while the defendants injected their mood into the case, the uncertainty allegations for Howey were denied invalidity. When asked for additional intervention to the attorney-client participant, Tenreiro said that if they did not follow the advice he received from lawyers, Ripple would “end the game”:
“If they get advice and don’t follow it, they lose. Whatever their lawyers tell them, they still have to deal with the SEC. This means the end of their defense. They are confused and we don’t know what the exchanges are giving. ”
Ripple’s lawyer, Gregory Rapawy, claimed that the advice Ripple received was not a matter of defense:
“It doesn’t matter whether we believe XRP is not an investment contract or not. Our defense is extremely fair. ”
In response, Tenreiro asked Ripple to withdraw its positive defense. In addition, Rapawy claimed that Ripple did not resist the discovery of non-privileged internal documents, adding that both parties’ internal documents are potentially related to the fair disclosure defense.
Finally, the judge Netburn stated that he would announce the decision “as soon as possible”.