Ripple vs. SEC: SEC Seeks Penalties, Advocating for $2 Billion Fine against Ripple

The U.S. Securities and Exchange Commission (SEC) has unveiled its long-awaited remedies-related brief, confirming James K. Filan’s earlier prediction. It has come to light that the SEC is seeking a massive $2 billion penalty from Ripple Labs as compensation for damages. Stuart Alderoty, Chief Legal Officer at Ripple, has responded to this development.

The $2 Billion Penalty Proposal
As revealed in the forthcoming public release of the SEC’s brief tomorrow, the commission is seeking $2 billion in fines and penalties from Ripple. 1/4

— Stuart Alderoty (@s_alderoty)
March 25, 2024

The SEC has demanded a $2 billion penalty from Ripple Labs as part of its case against the company for its sale of the cryptocurrency XRP. Despite James K. Filan’s indication that the documents would be made public on March 26th, the crypto community learned of this development through a post by Stuart Alderoty, Ripple’s Chief Legal Officer.

Alderoty expressed surprise at the SEC’s stance, stating, “As you will see when the SEC’s brief is made public tomorrow, they ask the Judge for $2 billion in fines and penalties. Our response will be filed next month, but as we have seen time and again, this regulator has a history of making false, misleading statements.”

If the proposed $2 billion penalty is imposed, it would have a significant impact on the regulatory landscape for cryptocurrencies.

The legal battle between Ripple Labs and the SEC has been ongoing since December 2020, when the commission 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, potentially, the hearing for the remedies phase will commence.

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Ripple (XRP)