Ripple Responds to SEC’s $2 Billion Penalty Demand
Ripple has issued a rebuttal against the U.S. Securities and Exchange Commission’s (SEC) demand for it to pay nearly $2 billion in penalties.
In March, the SEC requested the court to mandate Ripple to pay $876,308,712 in disgorgement, $198,150,940 in prejudgment interest, and a $876,308,712 civil penalty, totaling around $1.95 billion.
Documents shared by James K. Filan, a defense lawyer and crypto legal expert, reveal that Ripple filed an opposition to the SEC’s motion on Monday.
The San Francisco-based payments company argues against the SEC’s requests for an injunction, disgorgement, and pre-judgment interest, proposing that the civil penalty should be capped at $10 million.
Ripple’s legal team contends that $10 million would be a suitable proportion of the company’s actual gross revenues from pre-complaint institutional sales and “would be proportionate in both percentage and dollar amount to comparable digital-asset cases where there was no culpable mental state and no substantial harm or risk of harm to others.”
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The SEC initially sued Ripple in late 2020, alleging the sale of XRP as an unregistered security.
Last summer, US District Judge Analisa Torres ruled that Ripple’s automated, open-market sales of XRP, referred to as programmatic sales, did not constitute security offerings, in contrast to the SEC’s claim.
However, the judge agreed with the SEC’s assertion that Ripple’s sale of XRP directly to institutional buyers constituted a securities offering.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
