Ripple asks SEC to fine $1.95 billion, suggests $10 million is appropriate
Key Takeaways
- Ripple Labs opposes the SEC’s request for a $1.95 billion fine, arguing that a fine of up to $10 million would be more appropriate.
- Ripple says the proposed penalties far exceed past digital asset cases and are inconsistent with court rulings.
- Ripple refuses to return profits in exchange.
Ripple Labs has officially filed a complaint against the U.S. Securities and Exchange Commission (SEC). It asked a New York judge to fine the company $1.95 billion.
However, Ripple claims: A fine of up to $10 million would be more appropriate.
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The penalties requested by the SEC include: $876 million in recoveries, $876 million in civil penalties, and $198 million in pre-judgment interest.
This amount comes after the court concluded: Ripple violated federal securities laws through institutional sales of XRP. However, it dismissed claims regarding the sale of XRP through exchanges and automated algorithms as violating the law.
To defend against this, Ripple They accused the SEC of going too far and demanding disproportionate penalties. According to actual court rulings. Ripple’s filing states:
The agency acted as if it had completely won and demonstrated reckless conduct. Neither did. The agency also controls Supreme Court and circuit precedent, seeking separate penalties more than 20 times those obtained from other defendants or defendants in prohibited hallucinations and digital assets cases.
Moreover, Ripple claims: There is no profit to be returned from disgorgage. It cited financial loss on sale of the institution after calculating taxes paid and other expenses.
This legal battle highlights the ongoing friction between regulators and cryptocurrency companies.
This tension was evident in SEC Chairman Gary Gensler’s recent post on X. This initially led many people to mistakenly believe he was resigning and to publicly express their disappointment when it became clear that he was not resigning.
With a master’s degree in Economics, Politics, and Culture in East Asia, Aaron wrote a scientific thesis analyzing the differences between Western capitalism and collective capitalism after World War II.
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