November 24, 2022
  • November 24, 2022

XRP lawsuit: Ripple says extension of discovery period would be “gravely damaging”

By on October 19, 2021 0

The U.S. Securities and Exchange Commission (SEC) lawsuit against blockchain company Ripple Labs for selling unregistered securities is approaching a year while showing no signs of a settlement soon.

Even as the SEC tries to delay deadlines set earlier by the court, Ripple is making similar efforts to close the case as quickly as possible. In a motion opposing the SEC’s previous request for an extension of the fact-finding deadline to January 12, the defendant asked the court on October 19 that the SEC’s proposal be rejected on several grounds.

Ripple has agreed to extend the rebuttal deadline and expert reports to Nov. 12, even though he “is prepared to meet the original timeline.” In addition, the cabinet proposed that the deadline for expert depositions not be extended beyond December 10, as this would leave sufficient time between the two proceedings.

Ripple claimed that before the SEC filed its request for an extension on Oct. 15, the two sides had sought to reach a settlement without court intervention. Additionally, the SEC had initially offered to extend the expert discovery close until December 22, which Ripple agreed despite being able to meet the original deadline set by the court.

With the SEC changing its tone, Ripple asked for the court’s help to prevent the trial from dragging on any further. The court itself had disapproved of the authorization of an additional period after the previous extension of the examination period.

The main reason for Ripple’s opposition is the fact that “further delay would be detrimental to Ripple and the XRP market.” Highlighting the losses incurred by the company since the start of the lawsuit, the letter stated,

“The wait for this lawsuit has done a lot of damage to the XRP markets, especially in the United States. Ripple’s cross-border payment product is based on liquid XRP markets.

He added,

“Within days of filing his complaint, nearly 20 exchanges delisted or suspended trading in XRP in the United States, and others have since followed suit, severely damaging the XRP market. This is seriously damaging to Ripple’s business.

However, the regulator insisted that Ripple “continued strong sales of XRP” while experiencing price increases for the duration of the litigation. The defendant said its overseas operations and markets have been resilient during this time, which by no means meant that the markets for Ripple and XRP were not “severely damaged by the expectation of this trial “. He further stated,

“Indeed, although the price of XRP has increased over the past year along with the larger digital currency market, its performance has lagged behind the market, including currencies like bitcoin and ether.”