A court in Ripple’s ongoing lawsuit with the SEC granted Brad Garlinghouse’s petition to obtain documents from Binance about XRP transactions.
Namely, Sarah Netburn, who presides over Ripple’s ongoing lawsuit with the Securities and Exchange Commission; granted Brad Garlinghouse’s petition to obtain documents from Binance.
Garlinghouse is one of the defendants in a lawsuit filed by the SEC for violating the Securities Act of 1933.
Last week, the legal group representing Garlinghouse filed a petition requesting XRP sales data from Binance; the largest cryptocurrency exchange by trading volume.
The lawyers said that this information could not be obtained by other means; but it is directly relevant to the case.
The inquiry petition made by Ripple as part of the overseas discovery process to collect data on all XRP sales made on the exchange.
The proposal recently approved, which is not surprising since the SEC did not object to it. This endorsement considered a small victory for Ripple in the lawsuit.
The court will now send a letter of petition to the Cayman Islands stock exchange on behalf of Garlinghouse. If Binance heeds the request, it will provide documents that can be as evidence in the case.
The complication, however, is that last month; the Cayman Islands Monetary Authority (CIMA) announced that Binance not registered and licensed to operate in the country.
Ripple accused of selling unlisted securities on trading platforms around the world
In a lawsuit filed in December 2020, the SEC argued that Ripple and its executives, CEO Brad Garlinghouse and executive chairman Chris Larsen; sold unregistered securities and made $ 1.3 billion in profits from unregistered securities sales over eight years old.
The regulator has at its disposal information on the sale of more than 350 million tokens.
That is, the defense is trying to challenge the SEC’s claims that Garlinghouse sold more than 357 million XRP on international cryptocurrency exchanges around the world, violating the rights of investors.
The charge was denied by Ripple’s legal team. They also recently cited the Lack of Clarity defense and said the SEC had not made its securities rules clearer. Now they have planned another defense.
By showing XRP sales outside of the US; the Ripple team plans to show that the SEC may not have jurisdiction over such sales.
In this regard, Binance is an important source of XRP sales data. Previously, Ripple allowed to request similar data on other exchanges that sold XRP, including Bitfinex, Bithumb, Bitstamp, HitBTC, Huobi Global, and OKEx.
Disclosure of information should be completed by October 15, as the court postponed the consideration of the case to that date.
Garlinghouse previously said that without XRP sales, the company would be less profitable. Ripple recently tried to bring former SEC chief financial officer William Hinman into the case in an attempt to prove that XRP should not be considered a security.