SEC Seeks Court Order for Ripple to Pay Nearly $2 Billion in Fines and Penalties
The U.S. Securities and Exchange Commission (SEC) is pursuing Ripple to pay nearly $2 billion in fines and penalties, following a lawsuit filed in late 2020 over alleged unregistered security sales of XRP.
While a district judge ruled last summer that Ripple’s automated XRP sales were not security offerings, she upheld the SEC’s assertion that direct sales to institutional buyers were securities offerings. James K. Filan, a defense lawyer, shared the SEC’s recent Motion for Remedies and Entry of Final Judgment, revealing the requested penalties: $876,308,712 in disgorgement, $198,150,940 in prejudgment interest, and a $876,308,712 civil penalty, totaling around $1.95 billion. The SEC argues that Ripple’s persistent violations warrant substantial penalties to deter future misconduct.
In response, Ripple’s chief legal officer, Stuart Alderoty, accuses the SEC of misleading statements and aims for fair treatment in the remedies phase.
Clever Robot News Desk 28th March 2024
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