SEC Seeks Nearly $2 Billion Fine Against Ripple Labs
The U.S. Securities and Exchange Commission (SEC) is seeking a substantial fine of nearly $2 billion against Ripple Labs, as disclosed in court documents.
Stuart Alderoty, Ripple Labs’ chief legal officer, confirmed the SEC’s request for the fine and announced that redacted versions of the filings would be available by March 26 on social media.
The proposed fine comprises $876 million for disgorgement, $198 million for prejudgment interest, and a civil penalty of $876 million, totaling $1.95 billion.
The legal dispute originated in December 2020 when the SEC sued Ripple Labs and its executives, alleging violations of federal securities laws through the sale of XRP to both institutional and retail customers.
In July, Judge Analisa Torres ruled that while the sale of XRP on exchanges and through algorithms didn’t breach U.S. law, Ripple’s institutional sales of XRP did.
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The SEC’s filing emphasized the need to deter similar behavior in the cryptocurrency space, stating, “The SEC asks the Court to consider how easily actors, particularly in the crypto asset space, can today engage in the same sort of conduct as Ripple’s and send a strong message that such abuses will not be tolerated.”
Alderoty criticized the SEC’s stance and announced that Ripple Labs would respond to the SEC’s motion next month. The SEC specified that Ripple’s response should be submitted by April 22, 2024.
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.
