Ripple Asks Court to Reject SEC’s $2 Billion Penalty Request in XRP Case
Please note that we are not authorised to provide any investment advice. The content on this page is for information purposes only.
Ripple Labs has submitted an appeal to the US Securities and Exchange Commission’s (SEC) request that the company pay $2 billion in fines in the XRP case.
“The SEC’s severe remedial requests are unfounded in law or principle. Ripple suggested that the court should reject them entirely.
Ripple Opposes ‘SEC’s Draconian Remedial Requests’
On Monday, Ripple Labs responded to the US Securities and Exchange Commission’s (SEC) request for a $2 billion penalty. In March, the securities regulator urged the court to deliver a final judgment against Ripple worth roughly $2 billion in the continuing XRP lawsuit.
Ripple’s chief legal officer, Stuart Alderoty, wrote on the social media site X, “Our opposition to the SEC’s request for $2 billion in penalties for legacy institutional sales is now public.” He added:
In a case with no charges (or conclusions) of recklessness or fraud and in which Ripple prevailed on key issues, the SEC’s request is merely another example of its continued intimidation of all crypto in the United States.
“We remain confident that the judge will approach this final remedy phase fairly,” Alderoty said in a statement.
In its filing, Ripple made various counterarguments against the SEC. “This Court’s ruling has provided welcome clarity and guidance about how Ripple can lawfully distribute XRP,” the digital currency company said.
It added that it “has every intent to adhere to that guidance in the future and every incentive to do so.” Ripple’s legal team continued:
The SEC’s severe remedial requests are unfounded in law or principle. This court should reject them entirely.
On Monday, Bloomberg reported that two SEC lawyers resigned after a federal judge sanctioned the agency for abusing its authority against cryptocurrency business Debt Box.
Ripple CEO Brad Garlinghouse said on Monday, “It feels appropriate that we file our response on the same day that two SEC lawyers resign for their (mis)conduct in the Debt Box case.”
The United States will continue picking up the pieces of the agency’s terrible policies long after [SEC Chair Gary] Gensler has left.”
