The documents may provide critical evidence that CEO Brad Garlinghouse was acting outside of the SEC’s jurisdiction.
The ongoing case between fintech firm Ripple and the U.S. Securities and Exchange Commission (SEC) took another turn this week when the company was granted access to Binance’s documents.
As part of the case against Ripple for selling unregistered securities, the SEC claims that Garlinghouse sold more than 357 million XRP tokens on crypto trading platforms to investors “all over the world.”
The legal team representing Garlinghouse requested documents “relevant to the case and unobtainable through other means” from Binance Holdings Limited on August 2.
The filing stated that the Ripple CEO sought foreign discovery on the basis of his good faith belief that Binance possessed unique documents and information concerning this case. The records concern XRP transactions that were allegedly conducted by Garlinghouse and may provide evidence that the Ripple executive made the transactions outside the jurisdiction of the SEC.
In June, Garlinghouse and Larsen filed a motion petitioning international authorities to request documents from several other non-U.S.-based crypto exchanges including Bitstamp, Huobi, and Upbit.
Ripple also argues that the SEC cannot regulate XRP as a security because it is a medium of exchange used for international and domestic transactions
The lawsuit began in December 2020 when the SEC filed against Ripple alleging that Garlinghouse and co-founder Chris Larsen had been conducting an “unregistered, ongoing digital asset securities offering” with their XRP token sales.