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The U.S. Securities and Exchange Commission (SEC) is seeking nearly $2 billion in fines from Ripple Labs in the ongoing XRP lawsuit. “There is absolutely no precedent for this,” exclaimed Ripple’s CEO regarding the $2 billion fine. “We will continue to expose the SEC for what they are when we respond to this.”
SEC Wants Ripple to Pay $2 Billion
The U.S. Securities and Exchange Commission (SEC) has asked District Judge Analisa Torres to impose nearly $2 billion in fines against Ripple Labs in the ongoing case over XRP, according to a court document made public on Tuesday. The SEC’s motion for remedies and judgment were filed under seal on Friday.
The attorneys for the securities regulator detailed:
On March 22, 2024, Plaintiff Securities and Exchange Commission (SEC) respectfully moves for an order from the court granting, as to Defendant Ripple Labs Inc., permanent injunctions, disgorgement and prejudgment interest, and civil penalties, in the amounts and in the form set forth in the Proposed Final Judgment.
The SEC is asking the court to enter a final judgment against Ripple Labs ordering the crypto firm to “pay $876,308,712 in disgorgement and $198,150,940 in prejudgment interest,” in addition to “$876,308,712 civil penalty.” The total amount the securities watchdog seeks from Ripple is $1,950,768,364.
Stuart Alderoty, Ripple’s chief legal officer, explained on social media platform X: “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.” He added:
Rather than faithfully apply the law, the SEC remains bent on wanting to punish and intimidate Ripple — and the industry at large. We trust the court will approach the remedies phase fairly.
Commenting on the SEC seeking $2 billion in fines from his firm, Ripple CEO Brad Garlinghouse said Chair Gary Gensler’s “SEC has repeatedly acted outside the law — not going unnoticed by judges admonishing the agency for a ‘gross abuse of the power entrusted to it by Congress’ (Debt Box case) and for acting without ‘faithful allegiance to the law’ (Ripple case).” He also pointed out “Gensler’s lack of attention” to the fraud by former FTX CEO Sam Bankman-Fried.
Noting that the securities regulator is asking for $2 billion “in a case that involved no allegations (let alone findings) of fraud or recklessness,” Garlinghouse stressed:
There is absolutely no precedent for this. We will continue to expose the SEC for what they are when we respond to this.
What do you think about the SEC asking the judge to fine Ripple nearly $2 billion in the XRP case? Let us know in the comments section below.