Ripple Submits Fresh Motion, Refutes Allegation of XRP Price Suppression

Attorney Bill Morgan has stated that Ripple’s recent filing in the SEC lawsuit addresses claims regarding the impact of ODL-related sales on the price of XRP.
Ripple Labs, a San Francisco-based cryptocurrency payments company, has submitted a reply letter to further support its motion to seal exhibits related to the SEC’s motions for remedies and judgment.
As usual, Attorney James K. Filan shared Ripple’s latest filings on the social media platform X.
Recall that on May 21, the U.S. SEC opposed Ripple’s omnibus sealing motion, arguing that the sealing requests could hide important information from the public, which might be relevant to the court’s decision on remedies.
Specifically, the SEC requested that the court reject Ripple’s request to seal financial figures and terms used to determine and justify the remedies requests. The regulatory agency also opposed Ripple’s demand to seal the financial details of the discounts offered to institutional buyers of XRP.
In its latest filing, Ripple emphasized that it had already addressed several of the SEC’s arguments in its opposition to the regulatory agency’s remedies-related opening brief. However, it responded to two arguments raised by the SEC in its May 21 opposition brief.
Ripple argues that the SEC incorrectly claims that details regarding its current financial status are relevant to the court’s decision on remedies. The company clarified that it is not disputing its ability to pay the measured penalty, but rather seeking to seal highly confidential business information to protect its interests and those of third parties.
“The SEC should not be able to force disclosure of Ripple’s highly sensitive confidential financial information simply by raising baseless arguments, especially when the court can reject those arguments without considering any of the highly confidential facts,” the company stated.
Furthermore, Ripple criticized the SEC’s assertion that its past contracts are irrelevant due to its change in the method of selling XRP.
The company referred to the declaration of its CFO, Jonathan Blitch, which emphasized the confidentiality of these contracts and how future counterparties could use the negotiated terms of past contracts to their advantage.
Additionally, Ripple argued that its current sales of XRP to customers for use in connection with its ODL product no longer meet the characteristics that the court determined were “institutional sales” during summary judgment.
“Ripple’s current sales of XRP to customers for use in connection with Ripple’s ODL product do not have any of the relevant terms of the over-the-counter contracts, such as discounts offered to sophisticated counterparties,” Ripple added.
Interestingly, pro-XRP lawyer Bill Morgan highlighted the significance of Ripple’s argument about ODL-related sales. Attorney Morgan noted that the statement indicates that Ripple does not suppress the price of XRP through its ODL-related sales.
Critics have accused Ripple of suppressing the price of XRP by continuously selling XRP for ODL purposes. For context, Ripple unlocks 1 billion XRP from escrow on a monthly basis. While the company re-locks 80% of these coins, 20% remain unlocked and are potentially sold to ODL clients, thereby increasing the circulating supply of XRP.
According to critics, Ripple indirectly dumps XRP on retail investors through these ODL-related sales, which they believe negatively impacts the price of the coin.
However, Attorney Morgan noted that Ripple’s argument indicates that the company does not dump XRP on retail investors or suppress the price of the coin.
He emphasized that Ripple’s statement shows that ODL sales have no impact on the price action of XRP.
Disclaimer: This content is for informational purposes only and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not reflect the opinion of The Crypto Basic. Readers are advised to conduct thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.