Ripple’s legal team claims that the sale of XRP tokens, which the US Securities and Exchange Commission has declared illegal, did not take place in the country and therefore is not subject to the Securities Registration Act. Ripple’s lawyers have told the court that they need evidence in the possession of Bainance Exchange to substantiate their claim.
to the Report Coin Telegraph, Brad Garlinghouse’s attorney, recently filed a lawsuit involving Bainance in a lawsuit filed by Ripple and the U.S. Securities and Exchange Commission.
According to a lawsuit filed Monday in New York’s Southern District Court, the Garlinghaus legal team has requested evidence that “relates to the Ripple case and the stock exchange commission, and in a way other than Holding Bainance, a subsidiary of Bainance in the Islands.” “Cayman is not available.” The case referred to US State Department law and the Hague Convention, and asked the court to send a letter to the Cayman Islands Central Office asking them to obtain evidence from Bainance.
This file states:
In good faith, Mr. Garlinghouse thinks that Holding Bainance has certain documents and information relevant to this case, specifically related to the process of those XRP transactions apparently by Mr. Garlinghaus and on digital currency trading platforms. Externally done.
Garlinghaus’s lawyers appear to be seeking to challenge the claims of the US Stock Exchange Commissioner by raising the issue that Ripple CEO has sold more than 357 million XRP tokens on international platforms and to investors from “all over the world”. Citing Section 5 of the U.S. Securities Act, passed in 1933, the legal team explains that the US Securities and Exchange Commission’s claim that XRP tokens are illegal is only relevant to the sale and supply of securities within the United States. Does not include foreign transactions. Documents requested from Bainance may also contain evidence to support this claim.
The case against the Garlinghaus legal team states:
As the Exchange Commission knows, Mr. Garlinghouse’s XRP tokens have been sold on digital currency trading platforms outside the United States. What Mr. Garlinghaus is looking for is to prove that sales and supply [توکنهای XRP] As mentioned by the Stock Exchange Commission, it has not been done in this country and is not subject to the law that this commission has invoked in this case.
The lawsuit was filed by the US Securities and Exchange Commission in December against Ripple, accusing Ripple, Garlinghouse and co-founder Chris Larsen of “illegally selling XRP securities.” Ripple’s legal team has previously said that the XRP token is more like Bitcoin and Ethereum, and that the US Securities and Exchange Commission has classified these digital currencies as commodities instead of identifying them.
However, it seems that Ripple intends to change the subject of the case or strengthen its position in court by comparing the issue of domestic sales and international sales of XRP. In June, Garlinghouse and Larsen asked international officials to provide them with evidence of a number of non-US exchanges, including Bitstamp, Huobi and Upbit. The review of the evidence of the Ripple Court and the US Stock Exchange Commission is scheduled to end by October 15 (October 23) this year.