On April 22nd, Ripple Labs responded to the Securities and Exchange Commission’s (SEC) request for almost $2 billion in fines. This action is the most recent event in the ongoing legal dispute between the two entities, which began in December 2020.
The Securities and Exchange Commission (SEC) alleges that Ripple raised $1.3 billion by selling XRP, which the SEC believes is an unregistered security. On July 13, 2023, Judge Analisa Torres of the US District Court for the Southern District of New York granted some of the SEC’s requests but rejected others. Specifically, Ripple was successful in its challenge to the Programmatic Sales, Other Distributions, and sales made by Larsen and Garlinghouse. However, Ripple lost its argument regarding the Institutional Sales. Additionally, the judge denied the SEC’s motion for summary judgment on the aiding and abetting claim against Larsen and Garlinghouse.
Based on this judgment, the SEC contended in its recent court submission that Ripple is obligated to pay approximately $2 billion in penalties. This amount includes $876 million for disgorgement, $198 million for pre-judgment interest, and an additional civil penalty of $876 million. The SEC emphasized the gravity of Ripple’s misconduct and the company’s continued possession of the largest XRP quantity while selling it unregistered to institutional buyers.
Although Ripple holds a contrasting viewpoint, they argued for a penalty amount nearer to $10 million in their opposition filing submitted on Monday. Ripple’s Chief Legal Officer, Stuart Alderoty, voiced the company’s position via X (previously known as Twitter), asserting, “Given that this case involved no claims or findings of negligence or deceit, and we prevailed on crucial points, the SEC’s demand is an illustration of their persistent attempts to intimidate the entire crypto sector in the United States.”
Alderoty further stressed that Ripple is optimistic that Judge Torres will treat the final phase of remedies impartially. The company contends that the SEC has not provided sufficient evidence to justify disgorgement and requests that the award of prejudgment interest be rejected. Furthermore, Ripple holds the view that any civil penalty should not exceed $10 million.
We have made it known that we disagree with the SEC’s proposed $2B penalty for past institutional sales of Ripple. In this case, where no wrongdoing or negligence was proven, and where Ripple emerged victorious on key points, the SEC’s demand seems excessive and further highlights their persistent…
— Stuart Alderoty (@s_alderoty) April 23, 2024
According to Ripple’s submission, the company’s actions were not excessive. Over a period of eight years, Institutional Sales were made to 41 sophisticated investors and entities. These investors were well-informed about the transactions they were engaging in and chose to proceed based on their own financial gains. No claims have been raised that Ripple misled or deceived these entities.
Ripple noted that its method for selling XRP has been altered following last year’s court decision. The company has openly acknowledged the ruling and revised its agreements to prevent any identified issues.
Read More
- Will MCU’s Blade Movie Be Rated-R Following Deadpool & Wolverine’s Rating? Kevin Feige Reveals
- ZRO PREDICTION. ZRO cryptocurrency
- Sakamoto Days Chapter 176 Will Likely Return To The Present; Release Date, Where To Read And More
- Guy Fieri Meets Flavor Flav As They Support U.S. Women’s Water Polo Team At 2024 Paris Olympics
- From Aaron W. Reed To Vinnie Jones: All The Actors Who Played Juggernaut So Far
- House Of The Dragon To Reportedly End With Season 4; Season 3 Shooting Schedule Explained
- How Responsible Is Matthew Perry’s Assistant For His Death? Here’s What Legal Experts Has To Say
- Millie Bobby Brown’s Nineteen Steps Set To Get Big Screen Adaptation; Know More Here
- USD HKD PREDICTION
- IQ PREDICTION. IQ cryptocurrency
2024-04-23 12:07