SEC Seeks $2B in Fine in Case Against Ripple Labs With No Fraud Allegations

The United States Securities and Exchange Commission wants a whopping $2 billion from Ripple Labs, the firm behind the XRP token, in a case that has no fraud allegations, according to the blockchain payment firm’s chief executive, Brad Garlinghouse.

In a post on social media platform X (formerly known as Twitter), Ripple Chief Legal Officer Stuart Alderoty confirmed the SEC’s upcoming brief, which is set to be made public tomorrow. The agency seeks to ask the judge for $2 billion in “fines and penalties.”

“Our response will be filed next month, but as we all have seen time and again, this is a regulator that trades in statements that are false, mischaracterized and designed to mislead. They stayed true to form here. Rather than faithfully apply the law, the SEC remains bent on wanting to punish and intimidate Ripple – and the industry at large.”

The legal chief expressed his faith in the legal system while adding that the court will “approach the remedies phase fairly.”

Garlinghouse also chimed in, highlighting that the US courts have found SEC and its chief, Gary Gensler, acting outside of the law and misusing their power while referring to the DEBT Box case.

“The SEC plans to ask the Judge for $2B in a case that involved no allegations (let alone findings) of fraud or recklessness. There is absolutely no precedent for this. We will continue to expose the SEC for what they are when we respond to this.”

Alderoty also noted that the SEC is not looking to regulate the digital asset sector or bring stability to the space but is rather “bent on wanting to punish and intimidate Ripple.”