Ripple Submits a Sur-reply to Correct the SEC’s Misstatement in the Slack Data Dispute

Ripple Submits a Sur-reply to Correct the SEC's Misstatement in the Slack Data Dispute
Ripple Submits a Sur-reply to Correct the SEC's Misstatement in the Slack Data Dispute

Ripple has filed a letter requesting permission to file an accompanying sur-reply to the SEC’s mandatory Slack follow-up filing in the latest update to the XRP vs SEC lawsuit. The additional response supported Ripple in the Slack data dispute and highlights the SEC’s false statement in its latest letter.

Ripple argued that the SEC misrepresented two statements, including the potential response rate to undiscovered Slack data and Slack messages sent by the single defendant Bradley Garlinghouse.

Ripple Slack Notification Email Response Rate Increased by 15%

Ripple claims that the SEC’s response to the defendant’s Slack notification email is 10-15% faster than the email submitted by Ripple. The defense clarified that due to the extremely low response rate, it did not generate all 21,000 Slack notification emails it collected. Additionally, the response rate of 111 Slack notification emails sent was just 0.5%. Ripple stressed that this completely contradicts claims made by the SEC about a possible reactivity to Ripple’s Slack notification email, which is vital.

The defendants’ counsel states in the attached sur-reply:

“From that collection of 21,000 Slack notification emails, Ripple produced a mere 111 Slack notifications, which amounts to a responsiveness rate of just 0.5% – far lower than the overall Slack communications’ responsiveness rate, and certainly not ten or fifteen times larger, as the SEC falsely claims. The responsiveness rate of Slack notification emails lends additional support to Ripple’s argument that the Slack data is not a uniquely rich source of the relevant communication.”

Ripple Defendant, Garlinghouse’s Slack Information

The defendant also stressed the SEC’s misrepresentation of Garlinghouse’s Slack message, which was hidden in the attached response. Ripple argued that the US Securities and Exchange Commission’s claim was backed by a Slack message alleging that individual defendants’ actual XRP sales were extraterritorial. The SEC rejected Garlinghouse’s argument regarding an appropriate issue of foreign securities outside of the United States. Ripple believes the Slack news has nothing to do with the SEC’s far-fetched evidence of XRP being an illegal sale of securities.

“The SEC does not and cannot articulate how this Slack message has any relevance as to whether any Defendant’s sales occurred in the U.S., which is a necessary element of the SEC’s Section 5 claims.”