TL;DR
- Ripple Labs Opposes SEC’s Fine: Ripple Labs has opposed the U.S. Securities and Exchange Commission’s (SEC) proposal for a nearly $2 billion fine, arguing that the court should impose a civil penalty of no more than $10 million.
- Ripple’s Counteroffer: The company stated that the proposed fines were excessive and recommended a $10 million fine instead, emphasizing its legal wins during the litigation and stating that it only sold XRP to well-informed institutional investors.
- Ongoing Legal Battle: This ongoing legal battle between Ripple Labs and the SEC continues to draw attention from the global crypto community, as it could set a precedent for future cases involving digital assets.
Ripple Labs has opposed the U.S. Securities and Exchange Commission’s (SEC) proposal for a nearly $2 billion fine. The company filed its opposition on Monday, arguing that the court should impose a civil penalty of no more than $10 million.
The SEC’s proposal asked the court to order Ripple Labs to pay $876 million in disgorgement, $198 million in prejudgment interest, and a $876 million civil penalty, amounting to a total of $1.95 billion. However, Ripple Labs has disputed these proposed penalties as overly punitive.
Ripple Labs stated that the proposed fines were excessive and recommended a $10 million fine instead. The company highlighted that there were no accusations or evidence of reckless behavior or fraudulent activity that would usually warrant such harsh financial consequences.
The company made it clear that it only sold XRP to institutional investors who were well-informed about the transactions. Ripple emphasized its legal wins during the litigation, indicating that the SEC’s requests do not align with the court’s decisions.
Ripple Recommends a $10 Million Fine Instead
Stuart Alderoty, the Chief Legal Officer at Ripple, expressed that the SEC’s request, in a case devoid of any claims or evidence of reckless or fraudulent behavior, where Ripple emerged victorious on major points, further underscores its continuous efforts to intimidate the entire U.S. crypto industry.
Ripple suggested a reduced fine of $10 million, stating that it better reflects the severity of the alleged violations and the company’s actions. They believe this amount is adequate for legal purposes without being excessively harsh.
Next, the court will review Ripple’s opposition and the SEC’s proposals. The final decision on penalties will be made by Judge Analisa Torres. “We remain confident that the Judge will approach this final remedies phase fairly,” said Alderoty.
This ongoing legal battle between Ripple Labs and the SEC continues to draw attention from the global crypto community, as it could set a precedent for future cases involving digital assets. Ripple’s stand against the SEC has been well met by the crypto market. At the time of writing, XRP is up by nearly 3% in the last 24 hours, and close to 13% in the past seven days, trading at $0.5463.
