SEC Wants to See Ripple Founders’ Personal Spending

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The US Securities and Exchange Commission (SEC) wants to gather information on personal expenses of Ripple Labs founders Brad Garlinghouse and Chris Larsen. The lawyers for Garlinghouse and Larsen have moved to deny the SEC’s request.

The SEC claims that the unrecorded XRP sales were made, and that the Garlinghouse and Larsen duo played an active role in this process. The regulator sent call cards to eight banks to access the pair’s historical financial transactions.

Considered “unsuitable”

The SEC believes Ripple’s founders are misleading XRP investors. For this, personal financial documents of both names are required, retrospectively for eight years. This information will include information on “how much they shop in the market every week” as well as professional transactions.

Garlinghouse and Larsen’s lawyers contacted the judge on Thursday. It was requested that the SEC’s initiative be halted, saying that the personal transactions made were not linked to Ripple’s corporate transactions.

It was emphasized that it was “inappropriate” for the SEC to make such a request about the defendants in a case where the allegation of fraud was not passed.

They will share information about XRP.

Garlinghouse and Larsen have agreed to share information on XRP-related transactions they have done in the past, according to Bloomberg news. It is stated that the SEC does not find this information sufficient, however, it cannot “make a consistent explanation” regarding “why” it asked for such additional information.

The SEC claims that Garlinghouse and Larsen ignored XRP as securities. Ripple’s founders allegedly earned $ 600 million from the sale of unregistered securities.

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