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SEC Seeks $1.95B Fine in Final Judgment Against Ripple
Stuart Alderoty, Ripple Labs’ chief legal officer, criticized the SEC and wrote that the company will file its response to the SEC’s motion next month.
- The U.S. SEC has asked a New York judge to impose a fine of $1.95 billion on Ripple Labs.
- The SEC asked the Court to consider how easily actors, particularly in the crypto asset space, can today engage in the same sort of conduct as Ripple’s.
The U.S. Securities and Exchange Commission (SEC) has asked a New York judge to impose a nearly $2 billion fine against Ripple Labs, according to court filings.
On Monday, Stuart Alderoty, Ripple Labs’ chief legal officer, posted on social media that the SEC was asking for such a fine and that redacted versions of the court documents would be made public by March 26.
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The SEC's proposal asks the court to order Ripple Labs to pay $876 million in disgorgement, $198 million in prejudgment interest, and $876 million civil penalty, amounting to a total of $1.95 billion.
The case began in December 2020 when the SEC filed suit against Ripple Labs and its executives, alleging that they violated federal securities laws by selling XRP to both institutional and retail customers. Last July, New York Judge Analisa Torres' ruled that the sale of XRP on exchanges and through algorithms did not violate U.S. law, only Ripple’s institutional sales of XRP did.
“The SEC asks the Court to consider how easily actors, particularly in the crypto asset space, can today engage in the same sort of conduct as Ripple’s and send a strong message that such abuses will not be tolerated,” the filing said.
Alderoty criticized the SEC and wrote that the company will file its response to the SEC’s motion next month. The SEC filing said that the “Defendant’s response shall be filed no later than April 22, 2024.”
Read More: Garlinghouse Says SEC to Press Judge for $2B in Fines and Penalties in Ripple Case
Amitoj Singh
Amitoj Singh is a CoinDesk reporter focusing on regulation and the politics shaping the future of finance. He also presents shows for CoinDesk TV on occasion. He has previously contributed to various news organizations such as CNN, Al Jazeera, Business Insider and SBS Australia. Previously, he was Principal Anchor and News Editor at NDTV (New Delhi Television Ltd.), the go-to news network for Indians globally. Amitoj owns a marginal amount of Bitcoin and Ether below CoinDesk's disclosure threshold of $1,000.
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