The Securities and Exchange Commission of the USA is requesting disclosure of private financial info of two executives of Ripple Labs Inc. in the context of the current lawsuit against the company, informs Bloomberg.
Co-founder of the company Chris Larsen and CEO Brad Garlinghouse asked a federal judge to thwart requests sent by the SEC to six private banks covering an eight-year period. Respondents call the SEC’s measures a “completely unacceptable overkill” in a court case that does not even include charges of fraud. They further pointed out that the SEC does not indict them of mixing personal finance with corporate, and its prerequisite covers all from revenue to non-business operations and “how much money they have spent at the grocery store on a weekly basis.”
Larsen and Garlinghouse say they consented to provide records linked to XRP transactions and evidence about the fees collected from Ripple, but the SEC “clarified” that this information was not sufficient.
“The SEC has not presented and cannot offer a clear justification on what basis they are allowed to access this data,” noted a spokesperson for the defendants.
The SEC alleges that the two executives disregarded legal advice that XRP could be identified as a security and directly received about $600 million from the sales of the token.
Earlier this month Ripple presented the claim that SEC actions against the company caused losses worth more than $15 Billion to XRP holders.
