The executives at San Francisco-based blockchain payments giant Ripple have filed a new filing asking the Securities and Exchange Commission (SEC) to review the international digital currency exchange documents, believing these records provide evidence that Section 5 of the Security Act has not been violated by the company’s executives.
Ripple is looking for documents from fourteen international cryptocurrency exchanges
The new application was submitted by former Ripple board member Chris Larsen and the Chief Executive Officer (CEO) of Brad Garlinghouse. The independent US Securities and Exchange Commission has been asked to review documents from fourteen offshore digital currency exchanges.
These fourteen cryptocurrency exchanges include iFinex, the parent company of Bitfinex, ZB Network Technology, Bitforex, Upbit Singapore, Bithumb, OKEx, Bitlish, Korbit, BitMart, Huobi Global, AscendEX, HitBTC, Bitrue Singapore, Coinbene and the Bistamp cryptocurrency exchange.
The SEC filed a lawsuit against Ripple and its executives back in December 2020, accusing Brad Garlinghouse and Chris Larsen of making $ 1.3 billion in profits from allegedly selling unregistered securities. However, these allegations have been clearly denied by Ripple executives.
Garlinghouse and Chris Larsen representatives stated that these sales did not take place on local exchanges but on the platforms of overseas digital currency exchanges. Therefore, they cannot fall under the jurisdiction of the Securities and Exchange Commission. As they said:
“For transactions carried out on such foreign trading platforms, both the offers from XRP and the sales of XRP were made in the books and records of the respective platforms and thus geographically outside the United States. The SEC’s failure to assert domestic offers and sales should be fatal to its claims.”