Binance Gets Involved in Ripple vs SEC Case – In Details
Ripple Labs, challenging a lawsuit from the US Securities and Exchange Commission (SEC), requested access to the documents of Binance Holdings Limited, a subsidiary of a major cryptocurrency exchange in the Cayman Islands.
According to the court’s documents in the Southern District of New York, Ripple CEO Brad Garlinghouse’s legal team filed a request on Monday.
The reason for such a request was that the Commission disputes offers and sales that took place in another country and are not subjected to the law referred to by the SEC.
“As the Commission knows, Mr Garlinghouse’s sales were conducted on a platform beyond the United States. In this regard, Mr Garlinghouse will provide the information that the offers and sales to which the SEC issued claims were made abroad and are not subjected to the law referred to by the Commission,” the lawyers wrote.
It also appears that lawyers are challenging the SEC’s claims that the Ripple CEO has sold over 357 million XRP tokens on cryptocurrency platforms to investors around the world. The team cited Section 5 of the Securities Act of 1933, which stated that the alleged illegal XRP sales concerned only domestic sales and offerings of securities. Documents requested from Binance may contain evidence to support this claim.
The request is part of a lawsuit the SEC filed against Ripple in December, alleging that the firm, Garlinghouse, and co-founder Chris Larsen were conducting an “unregistered digital asset offering” by selling XRP.
To which the Ripple legal team previously stated that XRP is more like Bitcoin (BTC) or Ether (ETH), which the regulator has classified as commodities rather than securities.
Earlier, Ripple Labs Inc. in an official letter to the court asked for permission to interrogate the former head of the financial department at the US Securities and Exchange Commission (SEC) William Hinman on July 19.