The lawsuit filed by the US Securities and Exchange Commission against Ripple Labs showed a recent development after US judge Sarah Netburn granted Ripple CEO Brad Garlinghouse’s motion for “Obtain International Discovery”. According to the order description,
“ORDER that grants 274 Letter Motion for Discovery. The court will communicate with the lawyer to arrange delivery of the letters. “
The lawsuit took a new turn on August 2 when the Garlinghouse legal team attempted to involve the crypto exchange Binance. The team filed a motion requesting documents from Binance Holdings Limited that are “relevant to the case and otherwise unavailable”.
Obtaining these documents will be vital as they supposedly relate to XRP transactions that Garlinghouse allegedly conducted on overseas digital asset trading platforms. Should the allegations prove to be true, Ripple and the Exec could successfully prove the SEC’s incompetence.
The application was filed under Section 5 of the Securities Act of 1933. This is a legal requirement that only applies to domestic sales and offers of securities. Granting such an application has the potential to find a lot of interesting evidence.
This isn’t the first time Garlinghouse has questioned the SEC’s jurisdiction over the sale of XRP tokens. Previously, the CEO, along with Chris Larsen, filed a request with international authorities in June to request documents from several non-US based crypto exchanges such as Bitstamp, Huobi and Upbit.
While this update puts the settlement talks on hold again, many in the community believe that Ripple is ready to fight a long battle. The pre-trial investigation phase of the case ends on October 15.