The U.S. Securities and Exchange Commission (SEC) is asking a New York judge to impose a colossal fine of nearly $2 billion on Ripple Labs as part of their long-running legal battle over the sale of XRP.
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SEC seeks record $1.95 billion in sanctions against Ripple
The SEC is not letting up in its relentless legal battle against Ripple Labs. According to Ripple’s General Counsel, Stuart Alderoty, the Securities and Exchange Commission (SEC) has filed documents claiming a total fine of $1.95 billion (876 million in restitutions, 198 million in interest and 876 million in civil fines).
On X, Stuart Alderoty strongly criticized the request as disproportionate. He announced that the company would respond to the SEC’s request by April 22.
Ripple Labs in the SEC’s crosshairs since 2020
The SEC filed suit against Ripple and its executives in December 2020, accusing them of violating federal securities laws when selling XRP to institutional and retail customers. Ripple disputes these allegations, claiming that XRP is not a financial security.
Last July, Judge Analisa Torres ruled that only institutional sales of XRP by Ripple were illegal, and not transactions on exchanges. This ruling was considered a partial victory for Ripple, but did not stop the SEC from continuing its crusade.
At the beginning of February, federal judge Sarah Netburn forced Ripple to disclose its financial statements for the years 2022 and 2023 to the SEC, adding a new twist to the case.
The case between the SEC and Ripple Labs has become a symbol of the regulatory challenges facing crypto companies in the US since the collapse of FTX.
As a journalist at Coinpri, I’ve been captivated by the world of bitcoin and blockchain since 2020. The decentralized aspect of Bitcoin particularly piqued my interest. Since then, I’ve been working constantly to spread my knowledge, hoping one day to see a world where everyone fully enjoys their financial freedom.
