Ripple Stands Firm Against SEC’s $1.95B Fine, Advocates for $10M Penalty

In an audacious move, Ripple Labs has vigorously opposed the Securities and Exchange Commission of the United States (SEC)’s plan to punish the blockchain company XRP Ledger an astounding $2 billion.

Defiantly opposing the SEC’s heavy fine suggestion, Ripple Labs asks the court to deny the regulator’s requests for disgorgement, prejudgment interest, and injunctive relief. As an alternative, Ripple is in favor of a civil penalty of no more than $10 million, which is a little amount in comparison to the SEC’s enormous demand.

“The Court should deny the SEC’s requests for an injunction, for disgorgement, and for pre-judgment interest, and should impose a civil penalty of no more than $10 million,” the filing asserts.

Unprecedented Fine Proposal

The SEC’s proposal seeks to impose a monumental financial burden on Ripple Labs, totaling $1.95 billion, comprising $876 million in disgorgement, $198 million in prejudgment interest, and a staggering $876 million civil penalty. However, Ripple contends that such punitive measures are unwarranted, given the nature of the allegations and the agency’s purported overreach.

“The SEC’s remedial requests are more evidence of the administrative overreach that has beset this case,” Ripple’s legal team asserts. “The agency acts as though it had prevailed entirely and had proved reckless conduct. It has done neither.”

Furthermore, Ripple challenges the legal basis for the SEC’s demands, citing precedents and questioning the validity of the agency’s claims. The company argues that the proposed disgorgement of gains is unjustified, emphasizing its purported lack of gains from institutional sales.

“Additionally, in a paragraph that redacted Ripple’s revenue from institutional sales, income taxes it paid, and its losses, the entity argued it had no gains to disgorge,” the filing states.

The conclusion of the ongoing legal struggle between Ripple Labs and the SEC is still unknown, and it will have a big impact on the cryptocurrency market as a whole.