The Court Ordered Ripple to Provide SEC With Terabyte Slack Messages
The court ordered Ripple to provide the Securities and Exchange Commission (SEC) with a terabyte of Slack messages between company employees that were previously detained due to a data error.
US Justice of the Peace Sarah Netburn, despite Ripple’s claims that it would cost $1 million to meet the requirements, considered these messages to be important and unique evidence in the SEC case against Ripple for the sale of unregistered securities.
The SEC filed a lawsuit against Ripple Labs and its original and current CEOs Christian Larsen and Bradley Garlinghouse for selling XRP as unlisted security on December 20.
Pursuant to Law 360, in the original Ripple enforcement petition of August 9, the SEC argued that communications between Ripple employees “are relevant to the claims and objections of the parties and are proportionate to the needs of the case.” The commission also added that Ripple must provide all messages from 22 email keepers in addition to Slack messages.
As the SEC said, the reports in question include (a) discussions about Ripple’s desire to create speculative XRP trading, (b) the impact of Ripple’s announcements and efforts on XRP price, the relationship and centrality of XRP sales to the general business of Ripple; and (d) XRP regulatory status.