Ripple Takes a Stand Against “Unjust” $2 Billion Penalty in Ongoing XRP Lawsuit Battle
The ongoing legal dispute between Ripple Labs and the U.S. Securities and Exchange Commission (SEC) has escalated to new heights. The SEC has delivered its final blow with a remedies brief, seeking permanent injunctions and disgorgement against Ripple. This move has sparked strong reactions, with Ripple’s Chief Legal Officer, Stuart Alderoty, openly questioning the fairness of the SEC’s legal tactics.
The SEC argues in its remedies-related final brief that “permanent injunctions” are necessary because there is a “reasonable likelihood” that Ripple will repeat its wrongdoings. The SEC accuses Ripple of engaging in unregistered sales of XRP, which has been its primary business since 2013. The SEC believes that even if Ripple hasn’t committed any violations since 2020, there is still a possibility of future violations.
Ripple, on the other hand, claims that it has revamped its operations to ensure compliance. However, the SEC dismisses this as a mere repetition of previous arguments and doubts Ripple’s genuine commitment to change.
Stuart Alderoty, in response to the SEC’s remedies brief, criticizes the SEC for disregarding international regulatory standards and attempting to mislead the court. He accuses the agency of disrespecting financial regulators outside the U.S. who have established comprehensive crypto licensing frameworks.
The SEC’s argument for imposing a permanent injunction on Ripple is based on the company’s alleged failure to comply with regulations and its supposed misinterpretation of the court’s order.
As the legal battle intensifies, the question remains as to what the final penalties and fines will be. The SEC is sticking to its demand for $2 billion, citing the profits generated by Ripple from its unregistered sales of XRP as the basis for disgorgement. Ripple, on the other hand, argues for a significantly lower penalty, suggesting that a fine under $10 million would be more appropriate.
The fate of Ripple and the SEC’s competing claims now lies in the hands of Judge Sarah Netburn. Whether it’s a ruling in favor of the SEC’s injunctions and disgorgement or a negotiated settlement, the outcome will have significant implications for future regulatory actions in the cryptocurrency industry.
Only time will reveal who will emerge victorious in this high-stakes battle between David and Goliath.