In a most recent update on the case of US SEC vs Ripple Labs Inc, the SEC is going to obtain personal financial information of Ripple Labs Co-founder Christian Larsen and CEO Bradley Garlinghouse.
The SEC has subpoenaed six banks including the SVB financial group, First Republic Bank, Silver lake bank, Silvergate Bank, Citibank N.A, and Federal Reserve Bank of New York. seeking for transaction information of 8 years of both the executives.
The US Securities and Exchange Commission has accused both executives to have personally profited $600 Million in the issue of unregistered tokens.
“Wholly inappropriate overreach” – Execs say in response.
In response to the SEC’s probe, Chris Larsen and Brad Garlinghouse have submitted a letter to the court asking to block the subpoenas sent to multiple banks seeking financial information of eight years.
Both the executives argue that is “wholly inappropriate overreach” for the SEC to ask for complete financial information as it is non-fraud litigation, and there are no allegations of intermingling their finances with Ripple’s.
The regulators do not have any right to ask for access to every other transaction not related to Ripple, and “how much money they spend at the grocer store every week”.
“The individual defendants’ privacy interests are especially powerful here because the requests and subpoenas seek such a comprehensive intrusion into their personal financial lives”, the letter read.
However, both the Execs have agreed to share the financial information that involves Xrp transactions, and other compensations from Ripple, but this doesn’t seem to be enough for the SEC.
“The SEC has not offered and cannot provide a coherent explanation for why it is entitled to this information” the letter further read.
The letter was submitted to Southern District Court in New York to Judge Sarah Netburn on Thursday.