Ripple Files for Disapproval of SEC’s Motion to Extend the Investigation Period by Two Months

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Ripple Files for Disapproval of SEC's Motion to Extend the Investigation Period by Two Months
Ripple Files for Disapproval of SEC's Motion to Extend the Investigation Period by Two Months

One of the attorneys who defended Ripple Labs in a lawsuit with the US Securities and Exchange Commission said on Twitter that Ripple appealed against the US Securities and Exchange Commission’s request to extend the investigation period by two months.

“SEC’s request poses ‘an existential threat’ to Ripple’s business”

Ripple: SEC’s Request Not Enough Reason to Change the Discovery Plan

As previously reported by Fxcryptonews on June 3, the regulator formally requested the federal judge to extend the investigation period into the Ripple case by 60 days.

The U.S. Securities and Exchange Commission claims it needed more time to remove more witnesses on the case (it removed witnesses and interviewed, which will take two days). Therefore, it will take another two months to complete.

Ripple’s attorneys have appealed to the judge, stating that this is not a sufficient reason to change the discovery plan. Also, if the court approves the extension, it will be detrimental to Ripple, as the SEC has misrepresented the reason for the extension.

“The SEC’s letter misstates the reasons for Ripple’s opposition to extending discovery. Ripple opposes this extension because the delay will be extremely prejudicial to Ripple and because there is no good cause to modify the discovery schedule.”

In general, in its letter to the court, Ripple indicated that if the delay is granted to regulators, it will pose an “existential threat” to Ripple’s business in the US.

Witnesses the SEC Wants to Withdraw

Other witnesses the SEC is looking to remove include Ripple’s former CFO Ron Will and Xpring’s former senior vice president Ethan Beard.

As reported at the end of May, 10 witnesses were present at the time, and former Ripple employees were ready to testify on various matters related to the Ripple case.

The reason the SEC cited delays and the invalidation of witnesses was because more evidence emerged during the discovery process, including the “large scale” of Ripple’s “illegal” XRP product.