XRP Lawsuit Update: Ripple Seeks Extension Post SEC’s Motion Victory

• Ripple complies with the U.S. SEC’s motion to furnish financial data from 2022-2023 but requests a one-week extension for remedies-related discovery, citing excessive burden.
• The company proposes a new deadline of February 20, 2024, to provide additional details on XRP sales contracts, emphasizing the necessity for adequate time to compile and disclose the information.

Recently, Magistrate Judge Sarah Netburn decided to grant the U.S. Securities and Exchange Commission’s (SEC) motion to compel, requiring Ripple to furnish financial statements from 2022-2023 along with the post-complaint XRP institutional sales contracts. Following this, Ripple’s legal team was quick to correspond with Judge Torres.

In their latest court filing, Ripple’s attorneys requested a one-week extension for the deadline pertaining to discovery related to remedies. While Ripple is complying with the order to disclose financial statements and post-complaint institutional sales contracts, the company contends that the request is excessively burdensome.

As a result, Ripple seeks an extension of the deadline for remedies-related discovery, proposing a new deadline of February 20, 2024, instead of the initial deadline of February 12. The company cites the court’s prior allowance for extensions and asserts its right to request additional time for discovery.

As per the order, Ripple will provide the SEC with details of XRP sales to institutional buyers, hedge funds, and ODL customers over approximately three years. However, Ripple argues that providing three years of sales contracts will require more time. As per Ripple, this delay will not prolong the overall duration of the case, as the SEC will have adequate time to prepare for the briefing.

Pro-Ripple Lawyers React to the Filing

Bill Morgan, a prominent lawyer supporting Ripple, responded to Ripple’s request for a one-week deadline extension, remarking, “What is 8 days after more than 3 years?”

He also commented on the SEC’s adoption of a new definition for “dealers” and “government securities dealers,” along with stricter regulations impacting cryptocurrency liquidity. These regulations will take effect in 60 days, shortly after the amendment to the XRPL’s AMM.

Attorney Fred Rispoli suggested that the SEC is targeting Ripple. He expressed confusion over Ripple’s resistance to discovery, noting that keeping information concealed could potentially enable the SEC to pursue legal action against Ripple for post-complaint sales in the future. Despite this, Rispoli believes that Ripple and XRP remain ahead in the ongoing legal proceedings.

Former Ripple director Sean McBride has sparked excitement within the XRP community with a cryptic Twitter post teasing forthcoming “big” news from Ripple. While anticipation runs high, there’s a notable sense of skepticism, stemming from past experiences of major companies making commitments to integrate Ripple’s technology, only to disappoint in the end.

Big news coming from #Ripple and #XRP in the next couple days

— Sean McBride (@seanmcbride16) February 6, 2024

XRP Price Action

XRP’s price remains steady near the psychological level of $0.50, buoyed by trader demand. At the moment, it sits at $0.5021, showing a marginal decrease of 0.5%. Over the past 24 hours, the cryptocurrency has seen price swings between $0.4989 and $0.5104, with a notable uptick in trading volume, indicating heightened trader interest.

Renowned analyst Ali Martinez has noted that the TD Sequential indicator is indicating a buy signal on XRP‘s weekly chart. Based on this analysis, Martinez suggests that XRP may experience an upward movement lasting anywhere from one to four weeks.

The TD Sequential indicator is signaling a buy on the $XRP weekly chart, suggesting that #XRP is poised for an upswing lasting one to four weeks. pic.twitter.com/icw4CY86UW

— Ali (@ali_charts) February 6, 2024