The American judge Sarah Netburn has ordered that the crypto payment service provider Ripple has to submit almost 1 million missing messages from the communication platform Slack, which the American Securities and Exchange Commission wants to gain access to.
Although Ripple countered that this move could cost the company up to $ 1 million, the judge stuck to her decision as it concerns internal messages that could be crucial in the process.
In the case, the SEC had brought charges against Ripple Labs and the two managing directors Christian Larsen and Brad Garlinghouse for allegedly having illegally sold a security with the sale of the company’s own cryptocurrency XRP.
According to Law360, the Securities and Exchange Commission requested inspection of the Slack news on August 9, as it considered it to be “relevant to the defendants’ arguments and defense strategy and completely proportionate to the case”. In addition to the messages from the communication platform, the e-mails from 22 other e-mail services are also to be sent.
Last month, the SEC drew the judge’s attention to the fact that the Slack messages submitted so far were apparently incomplete. Ripple initially denied this, but then admitted that a data processing error would have resulted in only a small part being entered and almost 1 million more messages missing.
The SEC concluded that the lack of the relevant Slack data was already “very suspicious” and that the rest of the messages are highly relevant:
This news includes discussions: 1.) About Ripple’s plans to initiate a speculative trade in XRP; 2.) The influence of Ripple on the price development of XRP; 3.) The importance of XRP for Ripple’s business model; 4.) The legal status of XRP. “
Ripple said it could cost up to $ 1 million to bring the news, but the judge ruled that it was proportionate to the importance of the case.
“Every financial burden for Ripple is outweighed by the fact that it was previously agreed that all Slack messages are to be presented, the financial means are absolutely available and the missing amount is considerable,” said Judge Netburn in her ruling.