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Ripple Challenges SEC’s Heavy Fines in Court Filing
Ripple has filed an opposition to the Securities and Exchange Commission (SEC)’s demand for $2 billion in penalties. In a detailed motion made public by Ripple’s defense lawyer, James Filan, the company disputes the SEC’s proposed penalties as overly punitive. Ripple argued that the suggested fines are disproportionate and suggested $10 million instead.
Ripple’s Argument Against SEC’s Penalties
- The requested $2 billion in penalties by the Commission is not aligned with the actual circumstances of the case.
- No allegations or findings of reckless behavior or fraudulent activity that would typically justify such severe financial penalties.
- Ripple conducted sales of XRP transparently with knowledgeable institutional investors fully aware of the transaction details.
Ripple highlighted significant victories on key legal issues throughout the litigation, suggesting that the SEC’s demands are inconsistent with the court’s findings. The filing indicated that these victories could undermine the SEC’s position.
“In a case that had no allegations (or findings) of recklessness or fraud, and in which Ripple won on significant issues, the SEC’s ask is just more evidence of its ongoing intimidation against all of crypto in the U.S,” stated Ripple Chief Legal Officer Stuart Alderoty.
Ripple’s Proposed Penalty
Ripple proposed a much lower penalty of $10 million, arguing that this amount is more in line with the nature of the violations alleged and the actual conduct of the company. They suggest that this amount is sufficient to serve the legal interests without being disproportionately punitive.
Case Progress and Next Steps
Filan shared a timeline of the remedies briefing, listing that the SEC’s reply brief is due May 6, 2024. The court will review Ripple’s opposition and the SEC’s proposals, with the final decision on penalties to be made by Judge Analisa Torres.
“We remain confident that the Judge will approach this final remedies phase fairly,” said Alderoty.
XRP Price Update
XRP price has seen an increase, currently trading at $0.5464 according to CoinMarketCap, up by 1.6% with a peak at $0.5687 post the filing announcement.
Ian is a cryptocurrency enthusiast blending humor with professionalism. With an engineering background and a storyteller's heart, he simplifies the blockchain world with sharp analysis and a touch of wit. At Cryptowire, he brings his unique perspective to make digital financial innovation accessible to all.
