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Ripple opposes SEC’s demand for $2 billion penalty

It is worth noting that this case is of great importance to the cryptocurrency industry as a whole, as it could set precedents for the classification of digital assets and the regulation of their trading.

Date: 2024-04-23 Author: Łukasz Michałek
Ripple opposes SEC’s demand for $2 billion penalty

Ripple has defied the Securities and Exchange Commission’s (SEC) demand for a $2 billion fine.

In a detailed motion published by Ripple’s counsel, James Filan, the company challenges the penalties proposed by the SEC as unduly punitive. Ripple argued that the suggested penalties are disproportionate and proposed $10 million instead.

Ripple is challenging the hefty fines imposed by the SEC in a lawsuit

The filing stresses that the $2 billion penalty demanded by the Commission is not in line with the actual circumstances of the case. The document shows that there were no allegations or findings of reckless behavior or fraudulent conduct that would normally warrant such severe financial penalties.

The company explained that while it was indeed involved in the sale of XRP, it was done in a transparent manner and with competent institutional investors who were fully aware of the details of the transaction.

Ripple highlighted the significant victories it won throughout the litigation on key legal issues, suggesting that the SEC’s claims are inconsistent with the court’s findings. The filing indicated that these victories could undermine the SEC’s position.

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“In a case in which there were no allegations (or findings) of recklessness or fraud, and in which Ripple won on significant issues, the SEC’s claims are simply further evidence of its continued intimidation of all cryptocurrencies in the US.” – stated Ripple Legal Director Officer Stuart Alderoty.

In the motion, Ripple proposed a much lower fine of $10 million, which they say is more in line with the nature of the alleged violations and the company’s actual conduct. They suggest that the amount is sufficient to serve legal interests and will not constitute a disproportionate penalty.

Short answer and final decision

Filan released a timetable for the remedies briefing in March, stating that the SEC’s response is due on May 6, 2024. The next steps in the case include the court’s consideration of Ripple’s objection and the SEC’s proposal, and the final decision on penalties will be made by Judge Analisa Torres.

“We are confident that the judge will fairly approach the final phase of the appeals,” Alderoty said.

The XRP price has seen an uptick, currently standing at $0.5464 according to CoinMarketCap, up 1.6%, peaking at $0.5687 after the filing was announced.

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Łukasz Michałek
Łukasz Michałek
Founder of the rapidly developing cryptocurrency channel "Biblia Kryptowalut" on YouTube. He also co-creates the Arena Trading group with Marek. Łukasz is fascinated and passionate about blockchain technology and cryptocurrencies, which constitute the central element of his activity in the cryptocurrency industry.
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