SEC vs. Ripple: Opposition Brief and the Ripple Motion to Strike
XRP was outperforming the broader crypto market going into the weekend. From Monday (April 12) to Saturday (April 27), XRP was down 0.08% to $0.5244.
SEC v Ripple case-related activity attracted investor attention throughout the week. Ripple released a redacted version of its opposition brief on Tuesday (April 23). The opposition brief challenged SEC allegations that Ripple continued to breach US securities laws after the December 2020 complaint.
Ripple highlighted that it limited post-complaint XRP sales to ODL sales. Ripple also pointed out that its ODL contracts protect buyers from losses and prevent profits.
The opening brief also cited US case law to argue against the SEC’s push for a $2 billion disgorgement and injunction. These included SEC vs. Govil, where the court ruled the SEC cannot ask for a crippling disgorgement without proving investors suffered actual financial harm. Significantly, the SEC failed to overturn the ruling. The US appellate courts upheld the ruling in April 2024.
Ripple also filed a Motion to Strike on Monday, April 22. The Motion to Strike requested the court to strike SEC submissions supporting its opening brief.
Ripple argued that the SEC provided new testimony and exhibits to support its push for a punitive disgorgement and injunction. SEC enforcement accountant Andrea Fox analyzed Ripple’s financials and other documents to arrive at the $2 billion penalty. The SEC did not disclose the identity of the expert witness or her testimony during discovery.
There are several SEC court filings on the horizon. Next week, the SEC must file its opposition brief to the Motion to Strike. The SEC must also file its reply brief relating to Ripple’s April 22 opposition brief by May 6.