The SEC has asked Ripple for Slack messages, arguing that a previous batch of communications data was incomplete. According to the SEC, Ripple said it only collected a small fraction of Slack messages due to a data processing error in a document dated August 9, 2021.
If Ripple failed to deliver full Slack messages, it has violated the company’s current litigation, according to the SEC. The defense team wrote to Judge Sarah Netburn in the ongoing SEC vs. Ripple case and stood up against the SEC’s attempt to force the agency to offer Slack discussions. They want more than a million pages of discoveries to be produced.
Slack is private messaging software that includes chat rooms, private messages, and direct messages. It made a name for itself with the government bans in early 2020.
Slack messages are important in constructing the Ripple courtroom case
Jorge Tenreiro, an SEC attorney, argued that the Slack chats are needed to develop a full picture of the case for an abstract trial. Debevoise & Plimpton, a law firm representing Ripple, filed a response to the SEC’s lawsuit this week.
The agency described the SEC’s request as “extraordinary demand” and an “expensive fishing trip”. It can also take too long to complete and provide significant value to its customers.
Ripple’s lawyers called it “disproportionate” and “absolutely unreasonable” to want over a million pages of documentation.
“Ripple’s elaborate creation of over a million pages of discoveries, including emails, documentation, text messages, and Slack thread replies for 33 administrators, was unnecessarily duplicated by the SEC’s unreasonable request.“.
Ripple’s legal team has also come up with a statement from Canaan Himmelbaum in addition to the arguments above. He works with Consilio, a Ripple information provider, as Director of World Enterprise Growth.
Himmelbaum talked about the difficulty of getting data from the Slack platform. This includes processing terabytes of data. He also discussed challenges in dealing with custom modules that hinder data extraction.
In addition, the exports are in machine-readable JSON format, which makes human verification difficult. According to the statement, the total cost of fulfilling the SEC’s request is estimated at $ 900,000.