Ripple vs. SEC: SEC Pursues Penalties, Proposing a $2 Billion Fine for Ripple

The public has finally gained access to the U.S. Securities and Exchange Commission’s remedies-related brief, confirming James K. Filan’s earlier prediction. It has been revealed that the SEC is seeking a substantial $2 billion penalty from Ripple Labs as compensation for damages. Ripple’s Chief Legal Officer, Stuart Alderoty, has responded to this development.

The SEC is demanding a $2 billion fine and penalty in its case against Ripple Labs regarding the sale of the cryptocurrency XRP. Although the documents were set to be made public on March 26th, the news was shared by Stuart Alderoty, Ripple’s Chief Legal Officer, through a post on the X platform.

Alderoty expressed disbelief at the SEC’s actions, stating, “As you will see when the SEC’s brief is made public tomorrow, they ask the Judge for $2B in fines and penalties. Our response will be filed next month, but as we all have seen time and again, this is a regulator that trades in statements that are false, mischaracterized and designed to mislead.”

If enforced, the proposed $2 billion penalty would have a significant impact on the regulation of cryptocurrencies.

The legal battle between Ripple Labs and the SEC began in December 2020, when the SEC accused Ripple and its executives of violating federal securities laws.

However, the case is far from over. We will have to wait another month for Ripple’s response to the SEC’s remedies brief, and then the hearing for the remedies phase may commence.