According to the information, the US District judge decided on the SEC's request to provide Ripple with information on financial performance and institutional sales of XRP. In December 2020, the SEC filed a lawsuit against the company, accusing it of selling unregistered securities in the form of XRP worth about $1.3 billion. Ripple's co-founders, Brad Garlinghouse and Chris Larsen, were also sued.

However, in July 2023, Judge Analisa Torres ruled in Ripple's favor, arguing that programmatic sales and other token distributions do not constitute an offer and implementation of investment contracts. Despite this, the verdict also indicated that XRP sales to major players in the industry violated U.S. securities laws.

After that, the SEC filed an interim appeal, which was rejected by the judge. In October of that year, the SEC dropped charges against Garlinghouse and Larsen. The case regarding institutional sales of XRP is currently under review. The court ordered Ripple to provide additional information about its financial situation in order to determine the size of possible sanctions. The company must disclose financial statements and contracts for 2022-2023 for the sale of tokens to institutional investors, as well as respond to requests for relevant income. During the hearing, Ripple representatives tried to argue that the company's financial situation was irrelevant to the issues at hand, but the court disagreed and recognized the importance of providing the required information to make a fair decision.