- SEC requests $2 billion in fines from Ripple Labs as part of ongoing legal battle over XRP cryptocurrency sales
- Ripple calls SEC statements “false” and misleading; claims regulator bent on punishing company and crypto industry
- Judge previously ruled some Ripple sales did not violate laws, but direct sales to institutions were securities violations
The legal battle between Ripple Labs and the Securities and Exchange Commission (SEC) wages on. The latest development sees the SEC requesting $2 billion in fines from the blockchain company. Ripple has fired back, calling the regulator‘s actions misleading.
SEC’s Massive Fine Request
The SEC filed court documents asking a New York judge to impose $2 billion in fines and penalties on Ripple Labs. The request is part of the agency’s ongoing case against Ripple, which began in 2020.
The SEC accuses Ripple of raising $1.3 billion through unregistered securities sales. Specifically, the sales of the XRP cryptocurrency token.
Ripple Calls SEC Statements ‘False’
Ripple’s chief legal officer Stuart Alderoty said the company will file its response next month. He claims the SEC’s statements are “designed to mislead.”
Alderoty said on Twitter: “Rather than faithfully apply the law, the SEC remains bent on wanting to punish and intimidate Ripple — and the industry at large.”
The Ongoing Legal Battle
The SEC case alleges Ripple violated securities laws by selling XRP tokens. Last year, a judge ruled some Ripple sales did not violate the law due to a blind bidding process. However, direct sales to institutions were securities violations.
Ripple maintains XRP is a currency, not a security. The company has continued operating throughout the legal fight.
The high fine request signals the SEC aims to severely punish Ripple. How the judge rules on the massive penalty request remains to be seen. For now, the long-running crypto law battle continues.
Conclusion
The SEC and Ripple remain locked in a tense court clash over XRP sales. Despite some favorable rulings, Ripple now faces a potential $2 billion fine request. The company claims the SEC is misleading the public about the case. How this ultimately shakes out will set important precedents for crypto regulations and securities laws.
