Ripple Faces SEC Demand for $2 Billion Fine
The U.S. Securities and Exchange Commission (SEC) has petitioned a judge to compel Ripple to pay almost $2 billion in fines and penalties. Last year, the SEC filed a lawsuit against the payment company, accusing it of selling XRP without proper registration as a security. However, Judge Analisa Torres ruled that Ripple’s automated sales of XRP did not constitute security offerings, but the direct sales to institutional buyers did.
SEC’s Requested Penalties
- The SEC seeks $876,308,712 in disgorgement from Ripple.
- An additional $198,150,940 in prejudgment interest.
- A civil penalty of $876,308,712, totaling around $1.95 billion.
The SEC argues that Ripple’s long history of violations of securities laws justifies significant penalties, injunctive relief, and the disgorgement of profits to ensure deterrence and cessation of illegal conduct.
Ripple’s Response
- Ripple’s chief legal officer accuses the SEC of issuing false and misleading statements.
- The company believes the SEC is focused on punishing and intimidating Ripple and the broader industry.
Legal Battle Continues
- Both parties continue to engage in legal battles to settle the dispute.
- Ripple remains defiant in the face of the SEC’s demands.
As the SEC pushes for substantial penalties, Ripple maintains its stance against what it considers unfair treatment by the regulatory body.
Hot Take: Ripple vs. SEC Drama Continues
The ongoing legal battle between Ripple and the SEC shows no signs of resolution as both sides dig in their heels. The outcome of this high-stakes confrontation will have significant implications for Ripple, the crypto industry, and regulatory oversight moving forward. Stay tuned for further developments in this unfolding saga as the SEC seeks to hold Ripple accountable for alleged violations.
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