The demand was made by Justice of the Peace Sarah Netburn, explaining that the company is obliged to respond to requests from the U.S. Securities and Exchange Commission (SEC) on the amount of income received from institutional sales of XRP. The petition was filed directly by the SEC.
Ripple's lawyers tried to declare that the financial condition of the company is not relevant to the case. But the court found no grounds to deny access to information that could speed up the investigation and compensation for damages, as well as to assess the need for an injunction.
About three years ago, the SEC filed a lawsuit against Ripple and its executives Brad Garlinghouse and Chris Larsen, claiming that in 2020 the company raised $1.3 billion through the sale of XRP. In 2023, Judge Analisa Torres of the Southern District of New York ruled that sales of XRP to companies are considered illegal sales of securities, and sales of XRP to retail investors do not violate securities laws.
Crypto enthusiasts perceived this as a partial victory for Ripple over the regulator. In October, the SEC dropped charges against Ripple executives, which was also a significant development in the ongoing litigation.