Ripple Moves to Keep Discounts Offered on XRP to Institutional Buyers Private

San Francisco-based crypto payments company Ripple files an omnibus motion to seal certain materials relating to the SEC’s motion for judgment and remedies. 

Ripple submitted the request yesterday at the United States District Court for the Southern District of New York (SDNY).

Ripple’s Sealing Requests 

According to the recently filed motion, Ripple seeks narrowly tailored redactions to the remedies-related brief. The company also requests that the court seal specific exhibits completely to protect its highly confidential business information and third parties’ legitimate privacy interests. 

Before filing the motion, Ripple’s and the SEC’s counsels conferred to deliberate about the proposed sealing requests. The SEC consented to certain Ripple’s sealing requests but opposed others. 

Why Ripple Wants Its Financial Docs Sealed 

The information Ripple wishes to seal relates to the company’s audited financial statements and ongoing business relationships. Ripple highlighted four reasons the court should grant its request to seal the audited financial documents.  

First, the company argued that since it is a private company, it has never disclosed its financial statements. Second, Ripple contended that public disclosure of its financial statements would be highly detrimental to its operations. The company added that publishing its financial documents would expose its financial condition, revenue streams, and long-term business plans. 

Third, the company stated that the proposed redactions to its financial statements do not affect the relevant substance of the remedies-related brief. Lastly, Ripple emphasized that the court had granted similar sealing requests during the summary judgment phase of the lawsuit. 

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Ripple Moves to Protect Its Confidential Business Relationship 

Ripple also moved to seal some materials regarding its confidential business relationship, encompassing the financial terms of its contractual agreements with certain third-party business partners.  

According to Ripple, the sealing requests are specifically targeted, focusing only on the financial and pricing terms negotiated between the company and other past or existing counterparties. 

Here, some of the proposed redactions relate to discounts offered to institutional buyers of XRP. The company pointed out that while the contracts and discounts may be relevant to the SEC’s remedies-related arguments, the financial and pricing terms are not pertinent in this context. 

Furthermore, Ripple pointed out that its sealing requests would minimally affect the court’s decisions regarding judgment and remedies. 

“Ripple’s proposed redactions are narrow and targeted-they only pertain to information that is highly sensitive and would cause harm to Ripple, innocent third parties, and non-third party Ripple employees if publicly disclosed,” an excerpt of the motion read. 

Commenting on the development, pro-XRP lawyer Bill Morgan emphasized that Ripple wants to seal the discounts offered to institutional buyers of XRP. 

Ripple wants to seal the discounts offered to institutional buyers of XRP https://t.co/110vPrTkiq

— bill morgan (@Belisarius2020) May 14, 2024

Meanwhile, Ripple’s CFO (Chief Financial Officer), Jonathan Bilich, submitted a declaration supporting Ripple’s motion to seal certain materials relating to the SEC’s motion for judgment and remedies. 

As usual, seasoned defense lawyer James K. Filan shared Ripple’s proposed sealing requests.

@Ripple CFO Jonathan Bilich has filed a Declaration in Support of @Ripple’s Motion to Seal.https://t.co/r1dvt2vgPq

— James K. Filan 🇺🇸🇮🇪 (@FilanLaw) May 14, 2024

The SEC is expected to file its opposition to Ripple’s omnibus motion to seal by May 20, 2024. Afterward, the court would decide whether to grant or deny Ripple’s sealing request before issuing its final judgment.