Ripple to Pay $2B for Violating Securities Law Following SEC Filing

The US Securities and Exchange Commission (SEC) has publicly filed its motion for remedies and entry of final judgment in its longstanding case with Ripple.

According to the latest filing, the SEC demands that Ripple pay $2 billion for violating US securities laws. While the regulator initially filed the brief on March 22, it remained sealed till after redactions.

SEC Pushes for Court's Final Judgment

The prominent crypto attorney James K. Filan took to X to reveal the new development on the SEC-Ripple case.

Through its brief, the SEC reminded the court about Ripple's violations of securities laws. It demanded the judge pass a final judgment against the San Francisco-based blockchain firm.

The SEC's brief seeks a permanent injunction against Ripple's institutional sales of XRP. Further, the securities regulator wants the court to penalize Ripple with a nearly $2 billion fine.

The filing listed different amounts the blockchain company should pay as fines in various categories. The details include $876.3 million for disgorgement, $198.15 million for prejudgment interest, and a civil penalty of $876.3 million, amounting to $1.95 billion.

Notably, the SEC is pushing for penalties greater than Ripple's realized amount of institutional XRP sales before the case. Recall that Ripple raised $729 million from 2013 to 2020 via XRP sales to institutional investors.

The watchdog said Ripple recorded a surge in its XRP sales after it filed the lawsuit in 2020. Also, it maintained that the blockchain firm sold more XRP worth billions of dollars since the court's summary judgment in July 2023.

The SEC also claimed Ripple had not provided enough information about its XRP sales since the last judgment.

Ripple Executives React to SEC's Brief

Several people, including Ripple executives, have reacted to the SEC's remedies brief filing. Ripple Chief Legal Officer Stuart Alderoty and CEO Brad Garlinghouse lashed back at the commission.

Garlinghouse tagged the SEC's demand for a $2 billion penalty as illogical, noting that the case has no legal precedent, nor does it involve any allegations of fraud or recklessness.

Furthermore, the CEO said the regulator has acted outside the law several times, attracting criticisms from federal judges and others within the crypto industry. According to Garlinghouse, a federal judge slammed the SEC for abusing its power in the DEBT Box case.

He believes the regulator is still acting without faithful allegiance to the law" in its case with Ripple. Garlinghouse said Ripple will expose the SEC when responding to the regulator's brief.

Ripple's CLO Stuart Alderoty felt disappointed with the SEC's consistent target against Ripple. According to the previous schedule, the XRP issuer will file a response to the SEC's brief on or before April 22. The public version of the filing will be on April 24.

While the SEC case continues, XRP has posted moderate gains aligning with the broader crypto market.

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