The US Securities and Exchange Commission (SEC) has submitted a request to Ripple to deliver terabytes of Slack messages. Ripple refuses to accept this request. The Securities and Exchange Commission (SEC) has requested a million letters due to the ongoing lawsuit against Ripple, in which the SEC claims that XRP should be considered as collateral.
Slack is a messaging system for corporate employees.
Ripple refuses to share 1 million messages
According to the SEC, Ripple has refused to share more than 1 million messages. This may contain evidence that the SEC deems necessary to “construct a complete and accurate report of the summary judgment and trial.” Supreme Education Council feed it It is also suggested that these documents help refresh the memories of Ripple employees in the process.
On August 16, Ripple’s legal team wrote a Brief to US Judge Sarah Netburn, urging her to reject the SEC’s application. They argued that collecting and reviewing all required Slack data was “extremely cumbersome and disproportionate”.
Collecting up to 1 million Slack messages from 13 other custodians and according to Ripple’s e-discovery vendor, would be close to $1 million, not to mention the additional costs of hosting, reviewing, and producing the data. This is more than Ripple has spent so far in the discovery phase of this lawsuit.”
The lawsuit only lasts longer
Based on this reasoning, Ripple’s lawyers also noted that the mentioned Slack messages will significantly extend the discovery phase. The blockchain company estimates that it could take about 12 to 15 weeks to collect communications, excluding the time it will take Ripple to review the messages. This means that approval of the SEC’s application will change the current planning sequence.
Moreover, the letter stated that Slack’s additional requested messages are “neither critical nor uniquely relevant,” as the SEC did not adequately explain why the “lost documents” would certainly bring back witnesses’ memories.
In another argument, the letter indicated that the SEC’s request should be denied because several other federal courts have rejected similar discovery requests.
“Other courts that have looked into similar discovery requests for Slack data have ruled that Slack’s discovery is too cumbersome and expensive and have rejected requests to force its production in cases where the requesting party has already obtained significant discoveries.”
This lawyer keeps track of everything
James Phelan, an attorney in the Ripple community, told his more than 46,000 followers yesterday that Ripple has filed for closing documents attached to the agency’s motion regarding Slack’s posts. In addition, the exhibits were also added to his opposition to the request. Currently, Phelan said, the two sides disagree over what should be sealed.
#XRPCommunity #SECGov Fifth. #ripple #XRP The Securities and Exchange Commission (SEC) has filed a request to close certain exhibits submitted by parties as part of franchise disputes. pic.twitter.com/C8St0CO8V5
– James K. Phelan 🇺🇸🇮🇪 (@FilanLaw) August 17, 2021
Ripple’s legal team claims that this information is not relevant to the public and could harm the company by exposing sensitive data about the company.
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