United States Magistrate Judge Sarah Netburn has ordered Ripple to produce 1 million missing Slack messages among employees that the Securities and Exchange Commission has sought to access.
Despite Ripple’s protestations that complying would cost up to $1 million, the judge deemed the messages critical and unique evidence for the SEC’s ongoing case against the multi-billion-dollar company for selling unregistered securities. The SEC filed a suit against Ripple Labs and its initial and current CEOs, Christian Larsen and Bradley Garlinghouse, for selling XRP as an unregistered security on Dec. 20.
According to Law360, in the original motion to compel Ripple from Aug. 9, the SEC argued that the messages among Ripple employees were “relevant to the parties’ claims and defenses and proportional to the needs of the case.” It also said that Ripple should deliver all messages from 22 email custodians in addition to the Slack messages.
Last month, the SEC told Judge Netburn that the Slack messages Ripple produced appeared to be incomplete. Ripple initially denied this claim but revised its statement by claiming it was a data processing mistake that resulted in the company only producing a small amount of the relevant messages and that more than 1 million messages were missing.
New research has shed more light on the crypto industry’s largest-ever token sale, alleging that foul play may have been afoot during EOS’s initial coin offering (ICO) four years ago.
Researchers from the University of Texas have raised fresh concerns regarding Block.one’s record $4.362 billion ICO for the EOS blockchain in 2017 and 2018. The highly-anticipated project was backed by industry heavyweights including PayPal co-founder Peter Thiel alongside billionaire hedge fund managers Alan Howard and Louis Bacon. The research does not accuse Block.one itself of any wrongdoing and the company has cited a report stating there was no evidence it was involved.
On Aug. 31, Professor John Griffin of the Austin McCombs School of Business and financial analysis firm Integra FEC published their findings in a paper titled “Were ETH and EOS Repeatedly Recycled during the EOS Initial Coin Offering?” — alleging that wash-trading played a key role in EOS’s price discovery. Bloomerbe
According to the paper and outlined in an investigation by Bloomberg, EOS was allegedly wash-traded on the Binance and Bitfinex cryptocurrency exchanges in an effort to artificially inflate the prices. Wash-trading describes the process where an entity simultaneously acts as the buyer and seller at the same asset to artificially bolster volume or manipulate prices.
Griffin wrote that artificial demand from suspect accounts created the illusion of demand for the token and pushed prices up:
“First, it directly manipulated EOS’s offering price upward through the extra buying and inflated the market value of the token. Second, it created the false impression of value of the token which enticed others to want to purchase the ICO token.”
The United States Securities and Exchange Commission is reportedly investigating the startup behind the world’s largest decentralized cryptocurrency exchange, Uniswap.
The U.S. securities regulator has initiated a probe into Uniswap’s main developer, Uniswap Labs, the Wall Street Journal reported on Friday.
The report says that enforcement attorneys are now looking for information about Uniswap’s marketing and investor services, citing anonymous sources familiar with the matter.
A spokesperson for Uniswap Labs reportedly said the firm is “committed to complying with the laws and regulations governing our industry and to providing information to regulators that will assist them with any inquiry.”
Uniswap is a decentralized exchange that enables users to swap between Ethereum-based coins and tokens without a central entity. The exchange is ranked as the largest decentralized exchange, with a $1.5-million trading volume over the past 24 hours at the time of writing, according to data from CoinMarketCap.
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