Slack, the new SEC-Ripplefrontline – The US SEC wants access to Ripple’s (XRP) Slack messages as part of the dispute between the 2 parties. Ripple’s lawyers are fighting back and making financial arguments close to a million dollars, which would justify the rejection of such a request.
Ripple’s Slack: an invitation for the SEC
The SEC wants to take a look at Ripple’s Slack messages. The financial watchdog’s lawyer, Jorge Tenreiro, insisted that a million pages of exchanges would be needed to get a full view of the case:
“The messages produced show Ripple employees (including custodians whose Slack messages Ripple refuses to search) discussing matters directly related to the disputes at the heart of this case.”
For the law firm Debevoise & Plimpton representing Ripple, the request is an “extraordinary request,” “disproportionate,” and an “expensive fishing expedition,” noting that the messages are not relevant to the litigation. He added that enforcing such a request would also be time consuming and costly for his client.
As a result, Ripple’s attorney made a filing to Judge Sarah Netburn during the week of August 16, 2021, opposing the SEC’s request.
900,000 for Ripple’s Slack messages
To support their case, Ripple’s lawyers submitted a statement from Canaan Himmelbaum, Global Business Development Director at Consilio. The latter is the data provider for Ripple.
Himmelbaum describes the challenges of collecting data on Slack in his statement, citing the processing of a large volume of data amounting to terabytes. Data extraction would also be hampered by the complexity of handling custom modules. And exports in JSON format are machine readable, not human readable.
Himmelbaum estimates the total cost of eventually enforcing the SEC’s request at $900,000.
What will Judge Sarah Netburn decide? If she grants the SEC’s motion, it could set a damaging precedent for many crypto projects that find themselves in the financial watchdog’s sights. This legal battle seems never-ending.
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