Ripple, a San Francisco-based company specializing in cryptocurrency payments, has submitted a comprehensive motion to the United States District Court for the Southern District of New York (SDNY) to seal certain materials related to the SEC’s motion for judgment and remedies.
In its motion, Ripple is requesting specific redactions to the remedies-related brief, as well as the complete sealing of certain exhibits to protect its highly confidential business information and the privacy interests of third parties.
Prior to filing the motion, Ripple and the SEC’s counsels held discussions regarding the proposed sealing requests. While the SEC agreed to some of Ripple’s requests, it opposed others.
Ripple has outlined four reasons why it wants its financial documents sealed. Firstly, as a private company, Ripple has never publicly disclosed its financial statements. Secondly, the company argues that releasing its financial statements would be detrimental to its operations, as it would expose its financial condition, revenue streams, and long-term business plans.
Thirdly, Ripple asserts that the proposed redactions to its financial statements do not impact the relevant substance of the remedies-related brief. Lastly, the company emphasizes that similar sealing requests were granted by the court during the summary judgment phase of the lawsuit.
Ripple is also seeking to seal materials related to its confidential business relationships, specifically the financial terms of its contractual agreements with third-party partners. The requested redactions pertain to the financial and pricing terms negotiated between Ripple and its past or current counterparties.
Ripple highlights that while these contracts and discounts may be relevant to the SEC’s arguments, they are not pertinent in the current context. The company argues that its sealing requests will have minimal impact on the court’s decisions regarding judgment and remedies.
Ripple’s CFO, Jonathan Bilich, has submitted a declaration supporting the company’s motion to seal certain materials, and pro-XRP lawyer Bill Morgan has emphasized the importance of sealing the discounts offered to institutional buyers of XRP.
Defense lawyer James K. Filan has shared Ripple’s proposed sealing requests, and the SEC is expected to file its opposition to the motion by May 20, 2024. The court will then decide whether to grant or deny Ripple’s sealing request before issuing its final judgment.