FOIL Request Denied by NYDFS Puts Ripple’s Subsidiary (XRP II, LL) in a Hot Dispute
Ripple currently enjoys a fair share in the current boom that is happening in the crypto-market. Outside this, the cryptocurrency is expanding its reach in every way including cross-border payments. At the start of the bull market, altcoins (including XRP) failed to gain much traction until Bitcoin broke lots of resistance. It is necessary to know that XRP reached an excellent high when Coinbase enabled the trading of XRP tokens to its New York traders on May 14th when the price of BTC reached $8,000.
Amid the recent resurgence on the price of XRP, a new controversy surfaced which involved Ripple’s subsidiary (XRP II, LL). The Founder of Messari Crypto Ryan Selkis – in a Twitter thread – stated that his FOIL’s request in regards to Ripple’s XRP II affiliate sales and discounts was declined by NYDFS; the CEO hinted that there was something fishy about the move from Ripple and its subsidiary.
As part of the bid to encourage institutional investors, Ripple’s subsidiary XRP II, LL., is a registered money-service business for institutional investors. Selkis FOIL request involved a formal tender that demanded important details from New York State based on New York’s Freedom of Information Law [FOIL].
The first request in the legal tender was in regards to the average sales price that Ripple’s subsidiary offered its customers from 2016 to 2019. However, the second and the third request concentrated on the discount spot the subsidiary provided, and the overall sales of XRPs performed.
Another black tag that even spurred the controversy with XRP II was the fact that it took almost three-and-a-half months for Selkis to receive a reply after filling the FOIL’s request – he filed the appeal on Jan.29th and got a response on May 13th.
Ryan Selkis stated this together with photographs of his filed request:
“1/ In January, I filed a FOIL request with the NYDFS regarding Ripple’s XRP II affiliate’s sales and discount policies. Remember, XRP II HAS A BITLICENSE. Today, after 3.5 months, I received a response. They denied the request. Thread.”
Furthermore, the reply given involved a reason why his FOIL request was rejected. The reason was that revealing vital information of such would result in a
“substantial competitive injury to the subject enterprise.”
In reply to this, Selkis stated:
“disclosing the discounts Ripple and its affiliate were negotiating with its heavily marketed commercial partners was off-limits.”
Selkis didn’t stop here; he went on to accuse NYDFS of depriving the general public the right to know about the discount spot offered by the subsidiary, and also the overall sales of XRP performed that the affiliate received.
Again, the CEO subjected the denial of his FOIL request to
He further added this:
“If a regulated entity can get away with this sort of material obfuscation, imagine what the status quo is today in crypto.”
Nevertheless, it is seen that this issue won’t distort the sentiments of the public, but lots of Twitter users have asked Selkis to get to the root of this matter and expose any illegal move.
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