XRP lawsuit: What is Ripple hoping to achieve with this move?

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The individual defendants in the current lawsuit against Ripple Labs and its executives have now moved to submit a motion for the SEC to investigate 14 foreign crypto-exchanges including iFinex, in response to the SEC’s request for a 60-day discovery extension.

The Memorandum of Law issued by Ripple CEO Brad Garlinghouse and Co-founder Chris Larsen, among others, asks papers from exchanges such as Bitstamp, Bitrue Singapore, Bithumb, iFinex, Huobi Global, and OKEx.

The executives added that there were ‘Letters of Request’ to the mentioned entities to solicit the assistance of the Central Authorities of the Cayman Islands, the Hong Kong Special Administrative Region of China, the Republic of Korea, the United Kingdom of Great Britain, Northern Ireland, the Republic of Singapore, the Republic of Seychelles, and the Republic of Malta.

This might be the executives’ reply in response to the SEC’s updated complaint, which said that Garlinghouse and Larsen sold over two billion XRP units to “public investors” located “all over the world.” However, both the CEO and Co-founder have rejected the claims, stating at the time that they did not breach Section 5 of the 1933 Securities Act.

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The duo’s legal representation stated that their XRP sales were made on overseas exchanges over which the SEC has no jurisdiction.

The Memorandum of Law went on to add,

“In the case of transactions conducted on such foreign trading platforms, both the offers of XRP and the sales of XRP occurred on the books and records of the respective platforms, and therefore geographically outside the United States. The SEC’s failure to allege domestic offers and sales should be fatal to its claims.”

The exchanges cited in the MoL, according to the current petition, might reveal “unique documents and information” concerning the ongoing litigation, particularly the revised complaint of Larsen and Garlinghouse selling their XRP on foreign digital asset trading platforms.

The SEC recently made headlines after Judge Netburn refused the SEC access to conversations between Ripple and its legal counsels. Ripple may now be attempting to maintain momentum by developing a defence against the revised suit.

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