SEC Demands $2 Billion from Ripple in XRP Sales Case

The U.S. Securities and Exchange Commission (SEC) has made a significant revelation in its ongoing legal battle with Ripple Labs. They are seeking a hefty $2 billion penalty against Ripple for the damages incurred. Ripple’s Chief Legal Officer, Stuart Alderoty, has expressed his disagreement with the fine, deeming it excessive and accusing the SEC of employing misleading tactics.

This surprising development came to light after Alderoty shared a post on X, disclosing the SEC’s demand for $2 billion in fines and penalties. The release of relevant documents on March 26th reinforced these claims, catching the crypto community off guard.

If the proposed $2 billion penalty is imposed, it will have far-reaching implications for the regulatory landscape of the crypto industry. It would set a precedent for future cases, significantly impacting how such matters are handled.

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. Despite the passage of time, the case is far from over. Ripple still has a month to respond to the SEC’s remedies brief, followed by a potential hearing for the remedies phase.