SEC Requests to Seal Its Witness’ Identifying Information Regarding Motions to Exclude Expert Testimony in Ripple Lawsuit

The Securities and Exchange Commission (SEC) has requested to seal certain portions of the parties’ July 12, 2022, filings in connection with the motions to exclude expert testimony. 

The SEC reiterated that its proposed redactions are part of efforts to protect the identities of its five expert witnesses. According to the SEC’s letter, one of its experts was subjected to heavy threats and harassment following the disclosure of his name by attorney John Deaton. He is requesting to represent XRP investors in the upcoming Daubert challenge. 

Based on this, the SEC is not prepared to see other experts suffer a similar fate as the first witness. 

SEC Makes Further Sealing Requests

“To protect the identities of the SEC Experts, the SEC proposes redacting the name of each expert as well as identifying information, including contact information, educational and employment history,” the SEC noted. 

The Securities and Exchange Commission believes that the general public could use some of the details to “decipher the witness’ identities,” mostly through online search engines or social media platforms. 

The SEC also seeks to seal the identities of consulting firms and their employees that aided the experts in their reports. 

“These proposed redactions are narrowly tailored to serve the interests of witness safety, and the SEC’s application should therefore be granted,” the SEC added. 

Furthermore, the SEC is proposing to redact four documents to prevent the disclosure of the financial information of Experts 1, 3, and 4. According to the agency, the proposed redactions are necessary because disclosing the financial information of the experts is not relevant to the Daubert motions, and it could jeopardize the experts’ privacy interests. 

Notably, Ripple has also redacted the names of third parties from their reports in support of the Daubert motions. 

“The SEC does not object to Defendant’s Application. If the Court orders that the names of third parties be sealed, the SEC will redact all such names in accordance with the redactions proposed by Defendants,” the Securities and Exchange Commission’s letter reads.  

In conclusion, the SEC stated that other third parties whose information was cited in the parties’ reports might request to seal that information believed to be sensitive.