Ripple SEC Fine: What You Need to Know
On March 25, Ripple CLO Stuart Alderoty revealed that the SEC is seeking $2 billion in fines and penalties from Ripple. This move comes as part of the ongoing legal battle between Ripple and the SEC over the sale of XRP, the native token of the Ripple network.
SEC Request for Penalties
- SEC has asked the U.S. District Judge for fines and penalties totaling $2 billion
- This action is a part of the SEC’s efforts to punish Ripple and the larger cryptocurrency industry
Ripple’s Response
Alderoty mentioned that Ripple plans to file its response to the SEC’s brief next month. He criticized the SEC for making false statements and attempting to mislead the public throughout the legal proceedings.
Background of the Case
- In 2020, the SEC sued Ripple, CEO Brad Garlinghouse, and co-founder Chris Larsen
- The SEC alleged that Ripple conducted an unregistered securities offering, raising approximately $1.3 billion through the sale of XRP
Ripple CEO’s Criticism
Brad Garlinghouse, CEO of Ripple, has been vocal in criticizing the SEC and its chair, Gary Gensler. He accused the SEC of repeatedly acting outside the law and lacking faithful allegiance to legal principles.
Judge’s Ruling
- Judge Analisa Torres ruled that XRP sold on public exchanges did not meet the legal definition of a security
- The judge denied the SEC’s request for a repeal while the case was ongoing
Impact on XRP Price
Despite the ongoing legal battle, the price of XRP on spot markets has seen minimal fluctuations. XRP has shown a modest 2% increase to trade at $0.644 at the time of writing, according to CoinGecko.
XRP Performance Compared to the Market
XRP has underperformed compared to the broader cryptocurrency market in 2024. While the total market capitalization has increased by 57%, XRP has only managed a 5.5% gain since the beginning of the year.
Hot Take: Your Takeaway
As a crypto enthusiast, staying updated on legal battles like the one between Ripple and the SEC is crucial. The outcome of this case could have significant implications for the crypto industry as a whole. Keep an eye on how the legal proceedings unfold to better understand the potential impact on Ripple and XRP.
By
By
By
By