Connect with us

Crypto

SEC Seeks $2 Billion Penalty in Ripple Labs Case

The latest court hearing reveals SEC’s $2 billion penalty request against Ripple Labs for alleged XRP securities violations, sparking controversy and legal response.

Jay Hicks

Published

on

SEC Seeks $2 Billion Penalty in Ripple Labs Case

Recently, the U.S. Securities and Exchange Commission (SEC) applied for penalties that amount to almost $2 billion to be imposed on Ripple Labs by a New York judge during the latest court hearing of the SEC’s long-term fight against Ripple Labs Inc. This query is included in the list of claims submitted by the agency in its suit against Ripple Labs, which was started in December 2020.

Background and Allegations

SEC’s petition charges Ripple Labs and its leaders with a breach of the federal securities law by selling XRP to two types of customers, institutional and traditional. Judge Torez of New York issued a ruling last August that found that none of Ripple organization’s sales of XRP were securities violations. However, the SEC still insists on suing Ripple Labs, and the judge keyed in on their deals with XRP.

Response and Criticism

Ripple Labs’ Chief Legal Officer Stuart Alderoty called out the SEC’s latest statement, stating that it was full of falsehoods and that nobody in Ripple agreed. Alderoty commented that Ripple Labs will fill their response to the SEC’s motion next month. Brad Garlinghouse, Ripple’s CEO, said the same, bringing up how the SEC acts illegally and referring to the last rulings that saw the court defend the project.

Also Read: US SEC Experience Another Huge Loss, Ripple’s Prominent Claims

After requests from reporters and journalists to address this subject, the Security and Exchange Commission, however, decided not to respond to media inquiries on it. The SEC files court documents about Ripple Labs secretly, keeping them under seal. This means the public can only see the SEC’s argument once the agency decides to act openly.

The lawsuit by the SEC and Ripple has been raging since 2020 when the SEC initially claimed Ripple Labs of selling unregistered XRP tokens worth $1.3 billion as a security.

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *