SEC Requests $1.95 Billion Fine in Ripple Lawsuit

The US Securities and Exchange Commission (SEC) has requested a substantial fine of $1.95 billion against Ripple Labs in the ongoing XRP lawsuit, court filings reveal.

SEC Seeks $1.95 Billion Fine Against Ripple Labs in Ongoing Legal Battle

In a recent development, the SEC has petitioned a New York judge to impose a fine of $1.95 billion on Ripple Labs. This proposed penalty comprises $876 million in disgorgement, $198 million in prejudgment interest, and an additional $876 million in civil penalty.

Stuart Alderoty, Ripple Labs’ chief legal officer, disclosed the SEC’s request via social media on Monday. He mentioned that redacted versions of the court documents would be available to the public by March 26. Ripple Labs is slated to present its response to the SEC’s motion by April 22 this year.

SEC Urges $1.95 Billion Fine on Ripple Labs, Emphasizing Need for Crypto Market Regulation

According to the SEC filing, the regulatory body urges the court to consider the ease with which actors, particularly in the crypto asset space, can engage in similar conduct as Ripple's. The filing underscores the necessity of sending a clear message that such misconduct will not be tolerated.

The SEC initiated legal proceedings against Ripple Labs and its executives in December 2020. The allegations revolved around violations of federal securities laws through the sale of XRP to both institutional and retail customers. In July 2023, New York Judge Analisa Torres ruled that only Ripple’s institutional sales of XRP infringed US laws, while sales on exchanges and through algorithms did not.

Ripple's Legal Officer Criticizes SEC, Emphasizing High-Stakes Implications for Cryptocurrency Regulation

Alderoty criticized the SEC's approach and affirmed that Ripple Labs would submit its rebuttal to the SEC's motion next month. The outcome of this lawsuit carries substantial implications for the cryptocurrency sector, potentially establishing a precedent for the classification and regulation of digital assets in the United States.

The lawsuit's resolution and the court's verdict on the proposed fine will be closely monitored by the crypto community. The case holds significant implications for the future regulatory landscape of digital assets, potentially shaping how they are governed and classified in the US and beyond.