The CEO of Ripple, Brad Garlinghouse and the co-founder Chris Larsen has filed a motion asking the U.S. Securities Commission to investigate Bitfinex’s parent company iFinex and 14 other international crypto exchanges..
Motion of June 2nd requests documents from stock exchanges, including iFinex, Bitforex, Bithumb, Bitlish, BitMart, AscendEX (formerly Bitmax), Bitrue Singapore, Bitstamp, Coinbene, HitBTC, Huobi Global, Korbit, OKEx, Upbit Singapore and ZB Network Technology.
The memorandum in support of the motion states that the letters of formal notice ask the authorities of the Cayman Islands, Hong Kong, South Korea, the United Kingdom, Singapore, the Seychelles and Malta for help.
The SEC’s amended lawsuit against Ripple accuses Garlinghouse and Larsen of selling over two billion units of XRP to “public investors” based “around the world.”, and the SEC is looking to disembark Ripple executives based on the sales.
Ripple executives deny the SEC’s allegations of violating Section 5 of the Securities Act of 1933, emphasizing that Section 5 specifically prohibits domestic sales of securities without a declaration of registration.. Garlinghouse and Larsen’s legal representatives deny that their XRP sales were made on foreign exchanges and therefore outside the jurisdiction of the SEC:
For transactions carried out on such foreign trading platforms, both the XRP offers and the XRP sales were made in the books and records of the respective platforms and thus geographically outside the United States. The SEC’s failure to claim domestic deals and sales should be fatal to your claims.
Ripple claims exchanges and affiliates subject to its new “possess unique documents and information” filing in relation to the Ripple-SEC litigation, particularly with regard to “the process by which the XRP transactions allegedly carried out by each defendant were carried out on overseas digital asset trading platforms”.
The SEC amended its lawsuit against Ripple and the company’s executives in February, claiming their XRP sales had a negative impact on the price of the crypto asset.. The lawsuit also accuses Garlinghouse and Larsen of misleading public investors while losing billions of dollars to XRP, as Garlinghouse repeatedly claimed it had “too many” XRP tokens during the alleged sales.
The filing comes just days after the SEC’s case against Ripple suffered a significant blow.: The court declined the SEC’s offer to access communications between Ripple and its legal advisor.