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

The public has finally gained access to the U.S. Securities and Exchange Commission’s recent brief on remedies, just as James K. Filan had predicted. It has been discovered that the SEC is seeking a staggering $2 billion penalty to be paid by Ripple Labs as compensation for damages. Stuart Alderoty, the Chief Legal Officer of Ripple, has also responded to this development.

The Proposal for a $2 Billion Penalty

As shown in the SEC’s upcoming public brief, they are requesting the Judge to impose $2 billion in fines and penalties. 1/4

https://t.co/HM8dBbn7lp

— Stuart Alderoty (@s_alderoty)

March 25, 2024

The SEC is seeking a $2 billion penalty in its case against Ripple Labs regarding the sale of the cryptocurrency XRP. While James K. Filan had initially stated that the documents would be available to the public on March 26, the crypto community learned about this through a post made by Ripple’s Chief Legal Officer, Stuart Alderoty.

Alderoty expressed Ripple’s 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 have witnessed many times before, this regulator often presents false, misleading statements.”

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

The legal battle between Ripple Labs and the SEC has been ongoing since December 2020 when the SEC accused Ripple and its executives of violating federal securities laws.

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

Tags: Ripple (XRP)