Blow to Ripple as SEC Gets Access to Company's Missing Slack Messages

Ripple claimed that the SEC messages required by the SEC would cost more than $1 million to produce

article image
Cover image via

The U.S. Securities and Exchange Commission’s request for Ripple employee Slack communications has been granted by the court.   

Magistrate Judge Sarah Netburn states that the responsive documents sought by the SEC are “relevant” to the case:

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.

Ripple will have to produce relevant Slack messages from the 22 custodians identified by the securities watchdog.

The SEC claimed that the defendants had refused to produce the remaining Slack data. They failed to collect it due to an error made by Ripple’s vendor.

The agency was adamant that the missing documents were relevant to the case:  

The relatively few Slack documents Ripple has produced so far demonstrate that the Missing Documents are necessary for the SEC to build a complete and accurate record for summary judgment and trial.

In turn, Ripple argued that the SEC’s demand was overly burdensome, stating that it would take months to collect messages from all the custodians:

The SEC’s extraordinary demand calls for an extensive and costly fishing expedition that would likely take months to complete and come at very significant cost.

Due to the complicated conversation process, Ripple estimated that it would cost more than $1 million to process all the required messages.

Only the most important posts per day. Infographics, analytics, reviews & summaries. Join our Telegram channel!

article writer image
Alex Dovbnya

Alex covers all things crypto — from major projects, which are fighting tooth and nail to gain the upper hand in the burgeoning industry, to the latest regulatory trends around the world. He’s a firm believer that Blockchain has the potential to reshape pretty much every business out there, and cryptocurrencies are only a stepping stone to the upcoming decentralized revolution.