SEC Asks Court To Hit Ripple Labs With $1.95 Billion Fine
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The U.S. Securities and Exchange Commission (SEC) has asked a New York federal judge to impose a $1.95 billion fine on Ripple Labs in the final judgement of its ongoing legal battle with the crypto payments firm.
The SEC accuses Ripple Labs of selling $1.3 billion in unregistered securities through the sale of XRP tokens to both retail and institutional investors.
The request for a hefty fine is part of documents under seal until Mar. 26, said Ripple Labs’ chief legal officer Stuart Alderoty in a Mar. 25 post on X. Ripple Labs’ response will be filed next month, he added.
Ripple Labs Execs Attack The SEC For Its Latest Filing
In its proposal, the SEC has asked the court to order Ripple Labs to pay $198 million in prejudgment interest, $876 million in disgorgement, and an $876 million civil penalty.
Alderoty criticized the SEC on X, calling the SEC “a regulator that trades in statements that are false, mischaracterized and designed to mislead,” adding that ”rather than faithfully apply the law, the SEC remains bent on wanting to punish and intimidate Ripple.”
The SEC plans to ask the Judge for $2B in a case that involved no allegations (let alone findings) of fraud or recklessness. There is absolutely no precedent for this. We will continue to expose the SEC for what they are when we respond to this. pic.twitter.com/LdMQFQm70j
— Brad Garlinghouse (@bgarlinghouse) March 25, 2024
Ripple Labs CEO Brad Garlinghouse joined his colleague in criticizing the SEC on X. The regulator is involved in “gross abuse of the power entrusted to it by the Congress,” he said.
Judge Rules XRP Is Not A Security When Sold To The Public
The firm scored a partial victory against the SEC in July last year, when Judge Analisa Torres ruled that XRP was not a security when it is sold to the public. Torres also ruled that it is a security when sold to institutions.
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