Ripple Contests SEC's $2 Billion Fine, Advocates for Maximum $10 Million Penalty
Summary:
Ripple Labs, known for its blockchain payment protocol, has contested the U.S. Securities and Exchange Commission's (SEC) request for a $2 billion penalty, arguing it should not exceed $10 million. In a recent filing, Ripple urged the court to dismiss SEC's demands for an injunction, disgorgement, and pre-judgment interest. Ripple's Chief Legal Officer, Stuart Alderoty, has stated the SEC's requests aim to intimidate the company and the broader crypto industry.
Ripple, a blockchain organization known for its cross-border payment protocol, has firmly contested the U.S. Securities and Exchange Commission's (SEC) attempt to levy a $2 billion fine against them. The enterprise insists that the financial penalty should not surpass $10 million. Ripple Labs recently filed a document opposing the SEC's request for a federal judge to administer the hefty sum. The company made an appeal to the court to overrule the SEC's demands for an injunction, disgorgement, and pre-judgment interest. Moreover, Ripple advocated for a fairer civil penalty that does not exceed $10 million.
In their submission, Ripple clarified its commitment to comply with immediate guidance and called the SEC's severe remedial tactics baseless and in violation of principle, calling for the court to completely reject them. Ripple drew attention to the SEC's expectation for the court to demand a payment of $876 million in disgorgement, $198 million in pre-judgment interest, and an additional $876 million in civil penalties. Combined, the sum nearly touches $2 billion. Ripple made known the requested fine sum around a month back.
On March 25, Ripple Labs' chief legal officer, Stuart Alderoty, disclosed the SEC's demand for such fines from the federal judge. According to him, the SEC's intention is to penalize and intimidate Ripple and the broader crypto sphere. Portraying the fine as "unreasonable" within this recent submission, Ripple claims that an amount of $10 million accurately mirrors their actual revenues. In this context, it remains noteworthy that Ripple chose to hide the actual percentage disclosed in their document.
Ripple argues that a sum of such magnitude, "would be proportionate in both percentage and dollar amount to comparable digital-asset cases where there was no culpable mental state and no substantial harm or risk of harm to others." Alderoty proposes that the hostility and persistent coercion of the crypto sector in the United States by the SEC spurred their request for the fine. The Chief Legal Officer maintained that the Ripple lawsuit bore no signs of allegations or indications of recklessness or fraudulence. He maintains optimism that the judge will remain impartial during the final phase of the lawsuit.
Published At
4/23/2024 2:03:33 PM
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