SEC to Seek $2 Billion from Ripple Labs, Says Chief Legal Officer

The U.S. Securities and Exchange Commission will seek $2 billion in penalties from Ripple, the fintech firm’s chief legal officer has announced.

Stuart Alderoty said on Twitter Monday that the top regulator will seek the fine from a judge—with the details held for another day.

“As you will see when the SEC’s brief is made public tomorrow, they ask the Judge for $2B in fines and penalties,” he wrote.

Ripple and the SEC—the company behind the cryptocurrency XRP—have been locked in a legal battle since 2020.

The regulator hit the fintech company with a $1.3 billion lawsuit, alleging that it sold unregistered securities in the form of XRP, now the sixth biggest cryptocurrency by market cap.

But last year, Ripple scored a partial win against the SEC when a judge ruled that programmatic sales of XRP to retail investors did not qualify as securities.

Despite the judge saying that $728 million worth of contracts for institutional sales did constitute unregistered securities sales, investors and Ripple Labs interpreted the partial ruling as a win for the broader crypto industry.

Decrypt has reached out to both the SEC and Ripple for comment.

This is a breaking story and will be updated.