The ongoing case between Ripple and the U.S. Securities and Exchange Commission (SEC) took another turn as the company was granted access to Binance’s documents.
Judge Sarah Netburn of the U.S Magistrate court granted Ripple CEO Brad Garlinghouse’s motion to “Obtain international discovery” of Binance records. According to the docket.
As part of the case against Ripple for selling unregistered securities, the SEC claims that Garlinghouse sold more than 357 million XRP tokens on crypto trading platforms to investors. The legal team representing Garlinghouse requested documents which were relevant to the case and unobtainable through other means from Binance.
Ripple CEO sought foreign discovery on the basis of his good faith belief that Binance possessed unique documents and information concerning this case. Ripple’s legal team cited Section Five of the 1933 Securities Act, stating the alleged illegal XRP sales applied only to domestic sales and securities offers. The lawyers stated that Garlinghouse’s sales of XRP were “overwhelmingly made on digital asset trading platforms outside of the United States” and are not subject to the law that the SEC has invoked.
The lawsuit began in December 2020 when the SEC filed against Ripple alleging that Garlinghouse and co-founder Chris Larsen had been conducting an “unregistered, ongoing digital asset securities offering” with their XRP token sales.
