Ripple Should Pay More than $2 Billion for Sales, SEC Says.
SEC says punishment needed to stop securities law violations, crypto firm hasn’t accepted responsibility, SEC filing says.
The U.S. Securities and Exchange Commission (SEC) is urging a New York judge to levy a substantial fine of $1.95 billion against Ripple Labs. The SEC highlights the potential ease with which actors, particularly in the realm of cryptocurrency, could replicate Ripple's actions. Stuart Alderoty, Ripple Labs' chief legal officer, disclosed on social media that the SEC is pushing for this significant fine, with redacted versions of the legal documents set for public release by March 26.
In its proposal, the SEC is seeking various payments from Ripple Labs, including $876 million in disgorgement, $198 million in prejudgment interest, and a $876 million civil penalty, totaling $1.95 billion. This legal battle originated in December 2020 when the SEC filed a lawsuit against Ripple Labs and its executives, alleging violations of federal securities laws through the sale of XRP to both institutional and retail clients. Last July, Judge Analisa Torres ruled that while the sale of XRP via exchanges and algorithms didn't breach U.S. laws, Ripple's institutional sales did.
The SEC's filing emphasizes the importance of discouraging similar misconduct in the crypto space and calls for a stern message to be sent. Alderoty expressed criticism of the SEC's approach and confirmed that Ripple Labs would submit its response to the SEC's motion next month, as required by the court, with a deadline of April 22, 2024, for the response.
