Justice of the Peace Sarah Netburn believes that there is no need to disclose the personal financial statements of Brad Garlinghouse and Chris Larsen at the request of the SEC as part of the review of the regulator’s lawsuit against Ripple Executives.
In December 2020, the SEC accused Ripple of selling unregistered securities in the form of an XRP token worth $1.3 billion. The company’s CEO, Brad Garlinghouse, and its co-founder, Chris Larsen, are also defendants in the case. The regulator focused on their actions in an amended version of the lawsuit filed in February.
The SEC asked six banks for data on the defendants ‘ financial transactions over the past eight years. Ripple’s lawyers asked the court to block the subpoenas of the regulator. They noted that the firm’s executives agreed to provide data on XRP transactions and payments from Ripple.
The judge upheld the company’s motion:
“Because the SEC requests personal financial statements to verify the completeness of the information that the defendants have agreed to provide, the court finds no evidence to suggest that such a review is necessary or appropriate”.
The court’s ruling states that such requests will lead to the disclosure of private information that “has nothing to do with whether the defendants offered or sold XRP on the public market or facilitated its sale to potential investors.”
Earlier, Judge Netburn granted Ripple’s request for access to SEC documents revealing the regulator’s” interpretation and views ” regarding Bitcoin and Ethereum.