Ripple is resisting the SEC’s request to release additional Slack communications, calling it an expensive “fishing trip” that would take months.
The legal battle between Ripple and the US Securities and Exchange Commission is nearing its disclosure deadline (August 31st). The blockchain-based payment company had previously filed its objection to the regulator’s request for additional Slack notifications.
Meanwhile, Ripple has also filed a request to seal documents attached to the SEC’s request for Slack communications, as well as to seal documents attached to the company’s objection response. Because: The parties do not currently agree on what should be sealed.
#XRPCommunity #SECGOV v. #Ripple #XRP Ripple filed a Motion to Seal exhibits attached to the SEC’s Motion regarding Slack communications and to Seal exhibits attached to Ripple’s opposition to the SEC’s Motion. The parties currently do not agree on what should be sealed. pic.twitter.com/wvDQazOBQf
– James K. Filan 🇺🇸🇮🇪 (@FilanLaw) August 17, 2021
James Filan, attorney at law, said the company filed its objection to an SEC filing. The aim is to force Ripple to search for and submit relevant Slack communication. At the same time, Filan shared the defendant’s latest letter to the court on Twitter.
– James K. Filan 🇺🇸🇮🇪 (@FilanLaw) August 16, 2021
According to the filing, Ripple has rejected the SEC’s “extraordinary request” for more than a million Slack messages as “incriminating and highly disproportionate” and stated that the regulator’s request should be denied.
The letter states:
“The SEC’s letter request downplays the extensive intelligence the SEC has already received from Ripple, as well as the reasonable compromise offer that Ripple made to submit additional Slack messages from nine custodians.”
Costs and technical challenges
Ripple rejects requests to collect Slack messages from another 13 custody account holders, arguing that the initial data collection and processing alone could cost nearly $ 1 million.
Ripple’s defense indicates that there are “serious technical and other challenges in collecting and managing the unstructured data in Slack.” Less than two percent of the 115,000 Slack documents the company has already captured and processed “have been shown to be responsive to production requests from the SEC.”
This poor responsiveness “disproves the SEC’s claim that the Slack data is a rich source of uniquely relevant data,” argues Ripple, adding that the requested disclosure is an “inappropriate duplication and accumulation” of documents already received.
According to Ripple, the e-discovery provider initially failed to capture direct messages and instant messages with multiple participants due to a “bug”. After the oversight was discovered in late July, the company assured that it had immediately started collecting the required data.
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