As part of the process in the ongoing case between Ripple and the United States Securities Exchange Commission, the Court has required the former to provide slack messages which it previously withheld due to data error to the latter.
SEC had previously requested access to the terabytes of the slack message, which Ripple claimed they were missing. Having seen that it would serve as better evidence for SEC to corroborate its case against Ripple, a new court order by U.S. Magistrate Judge Sarah has indicated Ripple should comply despite its insistence that the process would cost $1 to do.
This case began as far back as December 20, 2020, when SEC filed a suit against Ripple Lab, its former and current CEOs, Christian Larsen and Bradley Garlinghouse, for selling XRP as an unregistered security
The U.S SEC, in its request, argued that the messages between Ripple employees were necessary for the case: “relevant to the parties’ claims and defences and proportional to the needs of the case.” It also demanded the delivery of messages from all associated email custodians.
This is coming after the SEC had informed the court that the Slack messages that Ripple presented appear incomplete. Initially, Ripple denied this claim but later came out that data processing mistakes led to the omission of relevant messages.
SEC argument that the missing messages are highly relevant. It explains that: “These messages include: (a) discussions about Ripple’s desire to create speculative trading in XRP, (b) the effect of Ripple announcements and efforts on, and Ripple’s concerns as to, the price of XRP, the relationship and central importance of XRP sales to Ripple’s overall business, and (d) the regulatory status of XRP.”
Ripple showed its displeasure against this and argued it would be unfair and unreasonable to produce terabyte messages that would cost it up to $1 million. Although, the judge said the messages are of much more importance than the money.
“Any burden to Ripple is outweighed by its previous agreement to produce the relevant Slack messages, the relative resources of the parties, and the amount in controversy,” Judge Netburn said.